Walmart officially announced the purchase of CTV manufacturer Wisio. Hoto by Jessica McGowan/Getty Image
Walmart confirmed her fourth quarter earnings today (20 February) that she has agreed to acquire a smart TV manufacturer wiso, including its smartcast operating system, which marks the retail legend’s funte in the content streaming and connected TV business in a $ 2.3 billion deal.
The deal conversation was previously reported last week, which sent the stock of the wiso more than 30 percent. Under the official deal announced today, Walmart will pay $ 11.50 for the witness shares, representing more than 20 percent premium above the vijio, which at the final completion price of the price of $ 9.53 on 16 February. After the merger, according to the wisio announcement, the financial results will report as a part of Walmart’s American section.
“We believe that this is the ideal next chapter in the history of the visit,” said Villiam Wang, the founder and CEO of the Vizio. “By bringing our abilities and resources together, we will run innovation and create even more value for our customers.”
The deal keeps both companies in a strong position because they watch themselves to install in streaming and smart TVs, also known as Connected TV (CTV), business. Walmart’s main competition is Amazn, which has produced its prime video streaming service and smart TV brand, Firetv. Apple (AAPL) Apple TV and Google’s Chromecast CTV are also prominent players in the industry.
“We believe that the customer-focused operating systems of the vijio offer great viewing experiences at attractive price points,” Seth Delier, Walmart’s Executive Vice President and Chief Revenue Officer, said in a statement. “We also believe that it enables a profitable advertising business that is fast scaling.”
Walmart’s advertising business made less than 1 percent of its business in 2022, but the company is searching for ways to develop that area, in a way on TV screen and in-store advertising in checkout corridors. Being the owner of a CTV company provides the use of Walmart from services such as Netflix and Disney+to potential advertising revenue, whose advertisement-level membership is already established in Vijio TV.
The wiso is still not as large as the $ 13 billion business -major smart TV company Roku, which owns about half of the US CTV device market. But in recent times, the stock of Roku has declined rapidly, which has emerged about Walmart’s interest in the visit and the company has reported a mixed income of four-fourth of income around the same time. Walmart sells both wiso and stop products in its store.