Walmart announced Tuesday that it has completed its $2.3 billion acquisition of VIZIO, a smart TV and technology company.
According to an official statement from Walmart, the deal is expected to bolster the retail giant's advertising business, Walmart Connect, by leveraging VIZIO's SmartCast operating system and its profitable advertising platform.
Walmart purchased VIZIO at $11.50 per share in cash. The deal was in the works since Feb. 20, when Walmart first made a public announcement about the deal.
VIZIO's 19 million active accounts and strong advertiser relationships, including Fortune 500 companies, will give Walmart new opportunities to connect brands with shoppers. The deal will also allow Walmart to enhance customers' shopping experiences.
The acquisition is expected to have a slight negative impact on Walmart's earnings per share in fiscal 2025 and 2026 due to transaction-related costs. However, the internal rate of return on the investment is projected to exceed Walmart's average return on investment.
The deal positions Walmart to expand its omni-channel offerings and potentially drive future growth in retail media and advertising.
VIZIO will operate as a subsidiary of Walmart, with its chief executive officer, William Wang, continuing to lead the company.
