Walmart confirmed plans to buy TV marker Vizio for $2.3 billion.
The retail giant hopes the deal will boost its ad business by leveraging Vizio’s SmartCast Operating System, which serves free ad-supported content on its TVs. The SmartCast system currently has 18 million active accounts.
Why we care. Walmart’s acquisition opens up new ways for advertisers to connect with potential customers. It allows for broader reach and engagement at a larger scale, which could lead to advertisers making more money from their investments.
Why now? Walmart’s decision to acquire Vizio is reportedly driven by its aim to drive more ad revenue and compete with Amazon in the advertising space. The retail giant is said to want to invest more in advertising opportunities and expand its media business, Walmart Connect, as it offers higher profits compared to traditional sales of groceries or clothing.
What Walmart is saying. Seth Dallaire, executive vice president and chief revenue officer of Walmart U.S., said in a statement:
- “We believe VIZIO’s customer-centric operating system provides great viewing experiences at attractive price points.”
- “We also believe it enables a profitable advertising business that is rapidly scaling.”
- “Our media business, Walmart Connect, is helping brands create meaningful connections with the millions of customers who shop with us each week. We believe the combination of these two businesses would be impactful as we redefine the intersection of retail and entertainment.”
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Deep dive. Read Walmart’s announcement in full for more information.
