Walmart announced it is planning to purchase TV-maker Vizio for $2.3 billion as a new way to help advertisers reach Walmart customers.
As part of the agreement, Walmart will not only take over manufacturing Vizio televisions but will also be in possession of its SmartCast Operating System. Walmart can then use these smart TVs to advertise its products to consumers using Walmart Connect.
Vizio says there are about 18 million regular users of SmartCast. The company says the platform has grown by 400% since 2018.
Walmart Connect is the retailer's in-store advertising system that places ads on TVs and displays across the store. Walmart Connect also places advertising on Walmart websites.
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The addition of Vizio will help expand Walmart's advertising business, which the company says rakes in over $2 billion per year.
“There is a lot to be excited about with this acquisition,” said Seth Dallaire, Walmart executive vice president and chief revenue officer. “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.”
The merger has not been finalized and does have to go through a regulatory review process.
According to 2022 data from S&P Global, Vizio was the second-largest brand of smart TVs owned by U.S. consumers.
