Walmart has announced its acquisition of TV manufacturer Vizio for $2.3 billion, a move aimed at expanding its profitable advertising business, CNBC reports.
The deal, revealed alongside Walmart’s fourth-quarter earnings, values Vizio at $11.50 per share. This move will allow the retailer to capitalize on Vizio’s SmartCast Operating System, which offers ad-supported content streaming, to enhance its media business, Walmart Connect, which has seen a 22% growth in advertising sales in the fourth quarter.
The purchase is also seen as an effort to compete with Amazon’s advertising segment. Walmart highlighted the potential to provide advertisers a wider reach through Vizio’s 18 million active SmartCast accounts and the opportunity to offer innovative TV and in-home entertainment experiences.