Roku CFO Dan Jedda: ‘We will still be distributed at Walmart’ despite retailer’s $2.3 billion Vizio deal

Despite a fairly strong fourth quarter earnings reportRoku’s stock price was shaken again two weeks ago when Walmart agreed to pay $2.3 billion to acquire smart TV company Vizio.

Speaking at a KeyBanc investor event Wednesday, new Roku CFO Dan Jedda tried to downplay the impact of that merger and acquisition event. (You can hear the entire speech here.)

“This wasn’t a surprise to us at all. We were very prepared,” Jedda said. “First of all, we’re still widely distributed – we have distribution everywhere and distribution is growing. And the one thing about Roku is that our streamers love our brand, they’ve been asking for us by name.

“We will continue to work with Walmart,” he added. “We have a great relationship with them and they will continue to sell Roku TVs. I think this opens up other distribution opportunities… other distributions proactively came to talk to us as soon as that deal was announced.”

(Image credit: Championship Research)

Jedda admitted that Roku’s days of powering Walmart’s private label “onn” are probably over. Notably, however, Walmart is now selling Roku’s own smart TVs.

“Our first-party TV is doing very well,” he said. “It was exclusive to Best. Koop in 2023. That was always just the launch plan.

However, Roku TVs have expanded to Amazon, where the reviews are solid. “We’re also in Costco, and we’re actually on Walmart.com, and we’re doing very well with our first-party TVs. And so distribution won’t be an issue for us. Again, we’re at 80 million [active users]. We will continue to grow. And we will do it with several retailers, including Walmart, they will continue to work with us.”

Roku’s stock price has fallen by about a third since news of Walmart’s serious interest in Vizio broke in mid-February.

The reason isn’t just at Walmart and Vizio, analysts say.

“Shares have doubled since last quarter on vape and these results were broadly in line,” equity analyst Michael Nathanson said Next television last month when we asked about the reason or bearishness.

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