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Vizio Stock (VZIO) Introduction
You might be among the millions of Americans with a Vizio product in their home. Whether it is a high-definition TV or sound bars, Vizio has quickly become one of the leading home entertainment brands in the United States.
If you’re happy with your Vizio products, you might be curious about buying Vizio stock. After all, most people feel better investing in companies they know and understand. We are more familiar with a few things than with our own television sets!
So, if you are interested in learning about Vizio stock before you buy it, you’ve come to the right place. This article will provide a brief company history, what Vizio does, and why a recent partnership may change your mind about Vizio’s stock.
Vizio Stock Corporate History
Vizio Holding Corporation (NYSE: VZIO) is an American television and entertainment hardware company founded in 2002 in Costa Mesa, California. The company is best known for its high-definition televisions, often priced lower than those of its competitors, such as Sony and Samsung. Vizio also makes soundbars and offers users direct access to multimedia and streaming platforms via its hardware.
William Wang founded Vizeio, which was initially named V, Inc., before eventually changing its name to Vizio. Wang started Vizio with just two employees and turned it into a $2 billion company.
But what about Vizio stock? Vizio attempted to go public in 2015 via an Initial Public Offering or IPO. Vizio wanted to raise $172.5 million, but the IPO failed. The company would try to go public again in 2021 after a failed acquisition by a Chinese conglomerate called LeEco. The Chinese government blocked the attempted acquisition because Vizio was an American company.
Fast forward to March 2021, and VIzio again filed for an IPO on the New York Stock Exchange under the ticker NYSE: VZIO. The stock is a component of the Rusell 2000 small-cap index.
In February 2024, Vizio shareholders got some exciting news. Walmart (NYSE: WMT) acquired Vizio for $2.3 billion or $11.50 per share.
The deal is scheduled to close in January 2025. At this point, Vizio will no longer be publicly traded and will be absorbed by Walmart. So, if you want to buy Vizio stock, you only have a limited time left!
Walmart’s Acquisition of Vizio
With the company’s size, Vizio would always be a target for a takeover or acquisition. It is too big to be ignored but too small ever meaningfully to challenge the likes of Samsung or Sony.
The marriage with Walmart is a perfect fit for both sides and was called a win-win agreement by Wall Street analysts. Vizio keeps its brand while integrating with Walmart’s data platforms and utilizing its shipping and distribution network.
No official announcement has been made yet about whether Vizio can still sell at other retailers like Costco or Best Buy.
When the deal closes in January 2025, Walmart will pay current Vizio shareholders $11.50 per share in cash. If you want to own Vizio stock now, don’t expect it to get any higher than $11.50 until next January.
This current setup does bring up the opportunity for an arbitrage trade for Vizio stock. Arbitrage trades are rare on the stock market but, when executed properly, can be an extremely profitable strategy with minimal downside risk.
Since the shares will be sold for cash at $11.50, any price under that level can be considered a deal. Arbitrage is taking advantage of the same asset being mispriced. Buy for cheaper now, and you will get $11.50 per share when the deal closes in 2025.
What are the risks with this? The deal can always fall through, in which case your Vizio stock will likely decrease in value. Investing that money elsewhere would cause a capital loss and an opportunity cost loss.
Vizio Stock Competitors
Maybe in your mind, Vizio stock isn’t your cup of tea. After all, it will only be a publicly traded company for another few months. At this point, you’ll be paid out for your shares when Walmart acquires the company.
Luckily, there are plenty of other similar stocks to Vizio or at least within the same industry. If you are looking for alternatives to Vizio stock, here’s a list of some solid companies that are more than worthy of consideration for your portfolio.
1. Sony Group Corp (NYSE: SONY)
Market Cap: $104 billion
52-Week Trading Range: $79.62 – $100.94
Dividend Yield: 0.65%
Sony Group Corporation is a Japanese multinational technology conglomerate based in Tokyo, Japan. The stock trades on both the Tokyo Stock Exchange and the New York Stock Exchange. In Japan, Sony is a component of the Nikkei 225 and the TOPIX Core30, two of the most influential stock indexes in the country. Sony is a company that needs no introduction.
Like Vizio, it produces high-definition televisions and audio equipment. Sony also manufactures goods like the Sony Playstation 5 video game console, semiconductors, and cameras. Sony also has a division for music production, films, and television. That makes it a good Vizio stock alternative.
2. Roku Inc (NASDAQ: ROKU)
Market Cap: $8.3 billion
52-Week Trading Range: $51.62 – $108.84
Dividend Yield: N/A
Roku is an American technology company that produces a streaming platform and various pieces of home entertainment hardware. The company was founded in 2002 and, as of 2023, had more than 80 million users worldwide. Roku started with high-definition video and streaming players.
It then began producing Roku streaming sticks plugged directly into televisions. The company also has a line of smart TVs but is best known for its Roku streaming platform, which Netflix was an early investor in.
3. Netflix Inc (NASDAQ: NFLX)
Market Cap: $267.24 billion
52-Week Trading Range: $315.62 – $639.00
Dividend Yield: N/A
Netflix is an American subscription streaming service that serves customers in over 190 countries worldwide. The company famously started as a DVD rental program through the mail and eventually morphed into a streaming service that shows television shows, movies, and even sporting events.
As mentioned, Netflix was an early investor in Roku and worked closely with Vizio to offer its streaming platform through its smart TVs. As of March 2024, Netflix has more than 260 million global users and is one of the top streaming services in the industry.
4. Sonos Inc (NASDAQ: SONO)
Market Cap: $2.1 billion
52-Week Trading Range: $9.78 – $21.98
Dividend Yield: N/A
Sonos is an American audio equipment manufacturer founded in 2002 and headquartered in Santa Barbara, California. This company is best known for its home entertainment soundbars that provide professional, high-quality audio for home media systems.
It also makes speakers, portable speakers, and smart speakers and is developing a platform using AI to help control its smart devices. Sonos is a good Vizio stock alternative.
5. Spotify Technology SA (NYSE: SPOT)
Market Cap: $59.12 billion
52-Week Trading Range: $128.67 – $313.16
Dividend Yield: N/A
Spotify is a Swedish audio and media streaming service founded in 2006 in Stockholm. As of 2024, Spotify has over 600 million monthly active users worldwide. Of those 600 million users, there are nearly 250 million paid subscribers.
The company is known for its vast music library and its highly-rated list of podcasts and audiobooks. Spotify is the home of the world’s largest podcast, the Joe Rogan Experience. Host Joe Rogan signed a $250 million deal to work exclusively with Spotify.
Final Thoughts: Vizio Stock
As of April 2024, calling Vizio stock a good investment is difficult. The stock has provided negative returns to its shareholders since its inception in 2021. The company was the target of several acquisitions, but Walmart acquired them in 2024. This speaks to Vizio’s quality of televisions and hardware while maintaining a consumer-friendly price tag.
If you plan on buying Vizio stock, you must do so soon. When the acquisition is completed in 2025, Vizio will stop trading on the markets and be absorbed by Walmart. At settlement, shareholders will receive $11.50 per Vizio stock. Given that Vizio stock is trading below $11.50 as of April 2024, savvy investors can take advantage of a potential arbitrage trade.
Vizio will likely only be trading on the stock market for another eight months. In those eight months, it is almost certain that the stock will not trade above $11.50.
Frequently Asked Questions
Yes, Vizio currently trades on the New York Stock Exchange under the ticker symbol NYSE: VIZO. The stock will only trade until the completion of the deal with Walmart, which is expected to be in January 2025.
The largest shareholder of Vizio is the founder and CEO of the company William Wang. As of April 2024, it is believed that Wang owns 86% of the outstanding shares for Vizio. This puts him in full control of the company and means he has the most to gain from the acquisition.
In February 2024, Vizio was acquired by Walmart for $2.3 billion. Walmart is offering $11.50 per share of Vizio stock, and the deal is expected to close in January 2025. When this happens, Vizio will no longer be a publicly traded company.
No, Vizio stock does not pay dividends to its shareholders, and it never has. Vizio does not have a substantial free cash flow level, which means it wouldn't be able to operate as a business while paying dividends to shareholders.
