Walmart has agreed to acquire television maker and software platform Vizio for $2.3 billion, the Bentonville, Arkansas-based retailer announced on Tuesday. The deal will send shockwaves through Walmart’s retail media network as advertisers will be able to use digital displays and TVs on the show floor to showcase their brands, and shoppers will also have an enhanced experience.
Related: Casey’s Introducing Its Own Retail Media Network
The acquisition now has Walmart in command of more than a fifth of the television market in the United States, and the move will beef up the retailer’s Connect advertising business, which pulled in around $3 billion last year and has been producing double-digit growth since its launch in 2021. In fiscal year 2024, the closed-loop omnichannel media business grew 30%.
Walmart believes the biggest area of growth for its ad business will come from selling ads at store locations. CPGs will now be allowed to advertise on screens in 5,000 stores that pull in 130 million shoppers each week.
Vizio gives Walmart access to an active user base of nearly 18 million people, and Vizio also has a software platform business with advertising revenue growth of more than 27% at a more than 60% margin rate.
“There is a lot to be excited about with this acquisition,” said Seth Dallaire, executive vice president and chief revenue officer for Walmart U.S. “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. We believe the combination of [Walmart Connect and Vizio] would be impactful as we redefine the intersection of retail and entertainment.”
A version of this story first appeared in Supermarket News.
Members help make our journalism possible. Become a CSP member today and unlock exclusive benefits, including unlimited access to all of our content. Sign up here.