Walmart’s Big Bet: $2.3 Billion Deal to Acquire Vizio Signals Shift in Retail Strategy

Walmart has finally acquired TV manufacturer Vizio.

Walmart announced on the 20th (local time) that they agreed to acquire TV manufacturer Vizio for $2.3 billion. This indicates Walmart’s high expectations for future advertising revenue.

Walmart stated that through this transaction, they can not only sell advertisements through Vizio’s TVs but also gain more opportunities to provide entertainment to shoppers.

According to a Walmart spokesperson, the transaction is expected to be completed by mid-summer after regulatory approval.

Through acquiring Vizio, Walmart has secured a TV operating system and has more space to sell advertising and viewer data while growing its advertising business.

Walmart already operates a large private electronics business providing phone chargers, speakers, and televisions through Onn. Also, Onn TVs use the Roku operating system.

Seth Dallaire, Walmart’s Chief Revenue Officer in the U.S., said, “This transaction is a response to the changing nature of Walmart’s revenue model and television business” and “Walmart’s access to buyers and data makes advertising through connected TVs more appealing to potential advertisers.”

News of a potential deal between Walmart and Vizio was first reported by the Wall Street Journal last week.