FTC to Conduct Full Antitrust Probe into Walmart’s Vizio Acquisition

Walmart Inc.’s planned acquisition of Vizio Holding Corp., a smart-TV maker, is set to undergo a thorough antitrust review by the Federal Trade Commission (FTC), according to an announcement by Vizio on Tuesday.

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Second Request from FTC

Vizio revealed in a regulatory filing that both companies received a “second request” from the FTC, asking for additional information regarding the proposed acquisition. Such requests are standard procedure in antitrust reviews and often prolong the regulatory process significantly.

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Deal Details

In February, Walmart announced its intention to purchase Vizio for approximately $2.3 billion. The retail giant aims to finalize the deal within the current fiscal year, ending in January.

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Business Expansion

The acquisition is poised to bolster Walmart’s burgeoning advertising arm, Walmart Connect, which has been expanding its online and in-store capabilities. By integrating Vizio’s technology, Walmart hopes to enhance its advertising reach and engagement with consumers.

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Strategic Move

Walmart, headquartered in Bentonville, Arkansas, has been diversifying its revenue streams beyond traditional retail. The advertising sector, characterized by rapid growth and higher margins, is seen as a key driver of profitability for the company.

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Regulatory Landscape

Under the Biden administration, there has been a heightened scrutiny of mergers and acquisitions. The FTC has been actively challenging proposed deals, recently filing lawsuits to block mergers in various industries.

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Market Reaction

Following the news, shares of Vizio, based in Irvine, California, experienced a 2.8% decline in premarket trading. Walmart’s stock saw a marginal 0.1% decrease during the same period.

By undergoing a comprehensive antitrust review, Walmart and Vizio are navigating the regulatory landscape as they seek to solidify their strategic partnership and capitalize on new growth opportunities in the competitive market.