According to the Wall Street Journal, Walmart Inc. is discussing acquiring TV manufacturer Vizio Holding Corp. for a sum exceeding $2 billion.
However, the outcome of these talks remains uncertain, with neither Walmart nor Vizio providing official comments on the matter.
Market Response and Share Performance:
Following the news, shares of Vizio experienced a significant surge, closing 25% higher at the end of trading in New York, with continued gains seen during after-hours trading. Conversely, Walmart’s shares experienced a slight decrease of less than 1%.
The acquisition of Vizio, known for its smart TVs and related products, could bolster Walmart’s advertising division.
By integrating web-connected smart TVs, Walmart could enhance consumer engagement and deliver personalized advertisements to viewers, aligning with its efforts to expand beyond traditional retailing.
Focus on Advertising and Market Expansion:
Walmart Connect, the company’s advertising unit, has been strengthening its online and physical capabilities. The addition of Seth Dallaire, a former executive at Instacart, as chief revenue officer highlights Walmart’s commitment to growing its advertising, membership, and data businesses.
Strategic Moves and Previous Acquisitions:
If finalized, acquiring Vizio would mark one of Walmart’s most significant deals in recent years. Previously, Walmart acquired Flipkart and explored purchasing a majority stake in ChenMed.
The company has also divested from certain acquired brands, focusing instead on strengthening its in-house apparel business and expanding its online product offerings.
Shift in Strategy and Renewed Focus:
Under the leadership of former e-commerce chief Marc Lore, Walmart acquired various startups in the 2010s.
However, the company has shifted focus recently, selling off some acquired brands and concentrating on internal growth initiatives, including expanding its apparel business and diversifying its online marketplace.