Posted 2/24/2024, 11:30:00 AM
Walmart Acquires Vizio for $2.3 Billion, Aiming to Boost Ad Business vs Amazon, Not Compete with Roku
- Walmart is acquiring Vizio for $2.3 billion, sparking worry among Roku investors about increased competition
- But Walmart is likely more interested in using Vizio to compete with Amazon's booming digital advertising business rather than directly against Roku
- Vizio makes most revenue from device sales but is shifting toward higher-margin ad revenue like Roku's platform model
- Walmart wants Vizio's ad capabilities to combine with its own ad business and better compete with Amazon
- Despite rivals like Amazon selling competing devices, Roku continues growing, suggesting the Vizio deal may not dethrone Roku