Walmart buys TV portal to nowhere

Vizio Holding

20/02/2024 18:01

(The author is a Reuters Breakingviews columnist. The opinions
expressed are her own.)
    By Jennifer Saba
       NEW YORK, Feb 20 (Reuters Breakingviews) - The $484 bln
retailer is buying smart-TV maker Vizio for $2.3 bln. It’s a
tiny gamble on the possibility the operating system eventually
captures individual viewing habits and beefs up ad capabilities.
But given Walmart’s M&A track record, chances are, it’s still a
waste.
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    CONTEXT NEWS 
    Walmart said on Feb. 20 it has agreed to acquire smart-TV
maker Vizio for $2.3 billion in cash. The $484 billion retailer
plans to plug Vizio hardware and its operating system into its
growing advertising business to better target shoppers. 
    The offer price of $11.50 per share represents a premium of
47% to Vizio’s undisturbed stock price on Feb. 12 before the
Wall Street Journal reported the deal’s prospects. 
    Walmart also reported fourth-quarter revenue rose 5.7%
year-over-year to $173.4 billion. The company’s advertising
revenue increased 33%.

 (Editing by Lauren Silva Laughlin and Sharon Lam)
 ((For previous columns by the author, Reuters customers can
click on  SABA/ 
jennifer.saba@thomsonreuters.com; Reuters Messaging:
jennifer.saba.thomsonreuters.com@reuters.net))