Walmart has announced that it is officially buying VIZIO for “$11.50 per share in cash, equating to a fully diluted equity value of approximately $2.3 billion.” The acquisition comes 21 years after the company’s founding in 2001 by entrepreneur William Wang, a time when the TV maker was simply known as “V Inc.”
Walmart on why it’s buying VIZIO:
The acquisition of VIZIO and its SmartCast Operating System (OS) would enable Walmart to connect with and serve its customers in new ways including innovative television and in-home entertainment and media experiences. It would also create new opportunities to help advertisers connect with customers, empowering brands with differentiated and compelling opportunities to engage at scale and to realize greater impact from their advertising spend with Walmart. The combination would be expected to further accelerate Walmart’s media business in the U.S., Walmart Connect, bringing together VIZIO’s advertising solutions business with Walmart’s reach and capabilities. These benefits would be further strengthened by the growth of connected TV platforms and Walmart’s industry-leading TV panel sales.
Some of the transaction details, which suggest the acquisition isn’t a total lock yet:
- The transaction is subject to regulatory clearance and other closing conditions specified in the merger agreement.
- VIZIO’s Board of Directors has unanimously approved the transaction.
- VIZIO stockholders (including Mr. Wang and his affiliates) holding approximately 89% of the voting power of VIZIO’s outstanding common shares have approved the transaction. No other stockholder approval is required to complete the transaction.
- VIZIO has the right to terminate the transaction within a 45-day period if, subject to the terms and conditions of the merger agreement, VIZIO receives and accepts a “Superior Offer” as defined in the merger agreement.
- Upon completion of the transaction, VIZIO’s Class A common stock will no longer be publicly listed.
Quotes:
- “There is a lot to be excited about with this acquisition,” said Seth Dallaire, executive vice president and chief revenue officer, Walmart U.S. “We believe VIZIO’s customer-centric operating system provides great viewing experiences at attractive price points. We also believe it enables a profitable advertising business that is rapidly scaling. Our media business, Walmart Connect, is helping brands create meaningful connections with the millions of customers who shop with us each week. We believe the combination of these two businesses would be impactful as we redefine the intersection of retail and entertainment.”
- “We believe this is the ideal next chapter in VIZIO’s history. By bringing our capabilities and resources together, we’ll drive innovation and create even more value for our customers,” said William Wang, chief executive officer of VIZIO. “Walmart’s approach is aligned with VIZIO’s mission and vision, and our technology will help bring a scaled, connected TV advertising platform to Walmart Connect. This transaction delivers immediate and compelling value to VIZIO stockholders and is a true testament to the hard work of the entire VIZIO team.”