Walmart buying Vizio is about the continuing quest to establish an ecosystem. They have been trying to build it to benefit from network effects and spent untold billions to manifest it. It makes sense, it is hard and they have struggled to materialize it: - Walmart Connect advertising grew at 28% ($3.4B FY) vs - Amazon growth of 27% (49.9B FY). Prior to this Walmart bought VUDU in 2010 and sold it in 2020. ** VUDU had 14MM subs when they sold it, Vizio has just over 18MM subs today. The opportunity is huge. By essentially converting the Amazon model from online and into B&M/omnichannel it gives them access to much bigger group of engaged buyers and companies wanting to get their attention. Just looking at the transaction it is about $128/sub. I find it interesting that Roku right now would be about $120/sub, I would have thought Roku would have provided a ton of incremental capabilities. I suspect this is one of several more deals we will see around this objective.
Justin Ehly
7mo
I agree that Roku makes more sense
Stephen Kaza
7mo
Question is, did you get you some VZIO at $7.60? I know a guy who did, solid insight here Laz. Kaz
Creative Problem Solver | Retail Co-Innovation Leader | Marketing Technologist
7moThis won’t be the last as more media assets look for buyers. Paramount would give Walmart a counter to Prime and SNAP a competitive media play against TikTok. A generative play would be interesting too as it begins to steal attention from other channels, especially search. The growth of media margin contribution will be critical for retailers to close the profit gap of Omnichannel.