Walmart has officially acquired TV manufacturer Vizio in a $2.3 billion deal that closed on Tuesday, marking the retail giant's major push into connected TV advertising and data analytics.
The acquisition centers heavily around Vizio's Platform Plus division, which handles advertising and data collection. This unit generates all of Vizio's gross profit through targeted advertising on its smart TV platform.
For Walmart, the deal expands its advertising capabilities by combining Vizio's TV data with its own shopper information. The retailer has already been using customer data for ad targeting on streaming services like Disney Plus and Hulu.
The move positions Walmart to compete more aggressively in the smart TV advertising market against players like Roku, Amazon Fire TV, and newer entrants like Telly. Recent reports show Vizio earning approximately $37 per user through advertising, while market leader Roku generates around $41 per user.
However, the acquisition has drawn attention from privacy advocates, noting Vizio's previous $2.2 million settlement with the Federal Trade Commission in 2017 over unauthorized viewer tracking.
Both companies will maintain independent operations in the immediate term, with Vizio CEO William Wang remaining at the helm. Seth Dallaire, Walmart's EVP and Chief Growth Officer, emphasized that combining Vizio's advertising expertise with Walmart Connect will enhance their customer-focused initiatives.
The deal represents a strategic move by Walmart to strengthen its position in retail media and connected TV advertising, while helping Vizio compete more effectively in the budget-friendly TV market segment.