Walmart confirmed plans to buy TV maker Vizio for $2.3 billion.
The retail giant hopes the deal will boost its advertising business by leveraging Vizio’s SmartCast operating system, which delivers ad-free content to its TVs. The SmartCast system currently has 18 million active accounts.
Why we care. The Walmart acquisition opens up new ways for advertisers to connect with potential customers. It allows for wider reach and engagement on a larger scale, which could lead to more bang for the buck for advertisers.
why now Walmart’s decision to acquire Vizio is motivated by its goal of generating more advertising revenue and competing 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 grocery or clothing sales.
What Walmart says. Seth Dallaire, executive vice president and chief revenue officer of Walmart USA, said in a statement:
“We believe VIZIO’s customer-centric operating system delivers great viewing experiences at attractive prices.” “We also believe it enables a profitable advertising business that scales quickly.” “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 commerce in retail and entertainment.”
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deep dive. Read Walmart’s announcement in full for more information.
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