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Vizio (NYSE:VZIO), which agreed to sell itself to Walmart (WMT) in February, edged lower by 1.2% as the Federal Trade Commission sued to block Tempur Sealy’s (TPX) sale to Mattress Firm.
Earlier Tuesday, the FTC sued to block mattress maker Tempur Sealy’s (TPX) planned $4 billion purchase of retailer Mattress Firm. The Commission voted 5-0 to authorize the lawsuit to challenge the transaction, saying the combination may lead to increased prices.
The FTC suit is challenging a vertical deal, similar to Walmart’s (WMT) planned purchase of Vizio (VZIO).
Walmart (WMT) agreed in February to acquire TV maker Vizio (VZIO) for $11.50 per share in cash, which works out to a fully diluted equity value of approximately $2.3 billion. In late April, Vizio and Walmart disclosed that they received a request for more information about the retailer’s planned acquisition from the Federal Trade Commission.
The second request came after Vizio (VZIO) and Walmart (WMT) voluntarily withdrew their HSR filing and refiled it in a likely attempt to avoid a second request from the antitrust regulator. The second request follows after some privacy and antitrust groups asking regulators to look closely at the transaction. The groups were mainly concerned about Walmart’s (WMT) purchase of Vizio’s advertising network and the associated privacy and data worries connected to the acquisition.