Walmart’s Acquisition of Vizio, a TV Maker, for $2.3 Billion Aims to Expand its Advertising Business

Walmart, the largest U.S. retailer, has recently announced its acquisition of TV maker Vizio for a whopping $2.3 billion. This move is part of Walmart’s strategy to expand its profitable advertising business and compete with Amazon’s growing ad segment.

Walmart has had a longstanding relationship with Vizio, being a major seller of their devices through its stores and Sam’s Club warehouse chain. However, with this acquisition, Walmart aims to leverage Vizio’s SmartCast Operating System to boost its ad business. The SmartCast system allows users to stream free ad-supported content on their TVs, providing Walmart with a new avenue for advertising revenue.

Seth Dallaire, the executive vice president and chief revenue officer of Walmart U.S., expressed his confidence in Vizio’s customer-centric operating system and its potential to provide great viewing experiences at attractive price points. Dallaire also believes that it will enable a rapidly scaling profitable advertising business.

One of the key advantages of this acquisition for Walmart is the increased reach it will have for companies that advertise with them. Vizio’s SmartCast system currently boasts 18 million active accounts, providing Walmart with a larger audience for its advertisers. By offering “innovative television and in-home entertainment and media experiences” after acquiring Vizio, Walmart aims to further enhance its appeal to both consumers and advertisers alike.

This move comes as Walmart faces increasing competition from Amazon’s ad segment, which has been growing rapidly in recent years. In order to stay competitive, Walmart has been actively expanding its media business, Walmart Connect, which offers higher profit margins compared to its traditional grocery and clothing sales. In fact, the segment’s advertising sales grew by an impressive 22% in the fourth quarter.

Overall, Walmart’s acquisition of Vizio is a strategic move that will not only strengthen its position in the TV market but also provide new opportunities for growth in the advertising sector. With Vizio’s SmartCast system and its large user base, Walmart will be able to offer a more comprehensive advertising platform to its partners and advertisers, giving them a greater reach and enhancing their overall experience.

As Walmart continues to evolve and adapt to the changing retail landscape, this acquisition demonstrates its commitment to staying ahead of the game. With its focus on expanding its advertising business, Walmart is positioning itself as a formidable competitor in the industry.