We’ve got some big news to report in the streaming world this week as Walmart’s digital retail, rental and streaming service Vudu has announced that they are officially in the process of being acquired by Fandango. Fandango already has their own VOD service called FandangoNOW and they are owned by NBCUniversal, who will be launching their own subscription streaming service Peacock this summer. So why would they be interested in Vudu? Allow us to speculate. But first, here is the official statement sent out to Vudu customers yesterday:

“We have some exciting news to share with you!

Vudu has entered into an agreement to be acquired by Fandango, the ultimate digital network for all things movies & TV.

While there will be many more exciting things to share in the months ahead, nothing about the Vudu experience is changing – your movie & TV library is safe, and you will continue to have access to all your Vudu apps across your favorite devices.

Vudu will continue to deliver an amazing experience, and we promise that the future will bring more new features, offerings, and other benefits as we join the Fandango family. In the meantime, you can find more details here.”

Fandango seems to be gunning for Apple, Amazon and Google with this move, which will help them expand their user base and their library of titles. You have to assume that at some point they will merge Vudu and FandangoNOW although in the immediate future they have stated that they plan to continue operating Vudu and FandangoNOW as separate brands. Clearly Vudu wants to reassure customers that their digital library is safe and in good hands, but it’s hard not to be a little concerned if you have an extensive movie collection with them.

In the future, Vudu’s disc-to-digital program also might be on the chopping block since it was only really beneficial to Walmart as a physical retailer. It is also unclear if Vudu’s foray into original programming will continue (they launched Mr. Mom, their first original TV series last year). You have to wonder why Walmart would want to part with Vudu right now given the current COVID-19 situation, but perhaps that actually gave them some extra negotiating leverage. Does this announcement concern you or do you think this will help give the big three a run for their money?