If the reports are true, it would seem that Comcast is interested in acquiring Vizio, a U.S.-based smart TV company. This would be a significant move for the company, as it looks to augment its smart TV strategy.  

According to Protocol, Comcast spoke to Vizio last year, and again earlier in 2022. The report says that Comcast has also conducted M&A discussions with TP Vision, the Amsterdam-based manufacturer that markets smart TVs under the Philips brand. TP Vision also has a presence in North America, and this could be an attractive proposition for Comcast.  

This comes just after Comcast and Charter Communications announced a new joint venture that will see the two companies team up to create a new streaming distribution business. The new business will be based on Comcast’s current Flex platform and hardware business, and will include Comcast’s XClass TV retail operations. The new venture will help Comcast to expand its reach into the streaming market and provide it with a larger customer base for its XClass TV products.

It also provides Charter with an opportunity to enter the streaming market without having to build its own infrastructure.  When it comes to acquisitions, Comcast’s chairman and CEO Brian Roberts is very selective. In a recent interview, Roberts reiterated that the bar for acquisitions was “very high” for his team. This is understandable given Comcast’s size and scope. As any business owner knows, it is essential to continually reassess your company’s assets and determine whether they are still the right fit for your needs.

This can be especially challenging in today’s uncertain climate, but it is essential to maintain a competitive edge. Roberts and his team have been focused on this task, and he feels confident that they are making the right decisions for the company. They have returned capital to shareholders and maintained a strong focus on their core assets.

As a result, Roberts feels that his company is well-positioned to weather any storm. As more and more people cut the cord and move to streaming services, traditional cable TV providers are feeling the pressure to keep up.

One way they may be able to do this is by becoming a platform like Roku or Amazon Fire TV, offering thousands of streaming apps and services.  This would require deeper connections with smart TV manufacturers, however, in order to get the necessary software and hardware, and thus why they would want to buy Vizio.  

Interestingly enough,  Vizio is one of the top-ranked smart TV brands in the United States, but it has seen its market share erode in recent years with the rapid emergence of cheap Roku-powered TV’s made by China’s TCL. Vizio doesn’t actually make its own TVs, but rather imports them from independent factories in China, Vietnam and Mexico. While Vizio still offers a quality product, the competition from TCL has forced it to lower prices in order to stay competitive. As a result, Vizio’s margins have been squeezed and it has had to cut costs in other areas in order to keep up with TCL’s aggressive pricing. 

The company has also made a name for itself in the world of advanced advertising. Vizio’s TVOS platform enables the company to collect detailed data about its users’ viewing habits, which it then uses to deliver targeted ads. The result is a highly effective ad platform that helps Vizio generate significant revenue. 

Notably, Vizio’s advanced advertising business is one of the main reasons why the company was able to become profitable so quickly after going public. With its strong position in the market, Vizio looks poised to continue its success in the years to come even if it’s not bought by Comcast.

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