Walmart May Buy Vizio for Over $2B to Boost Ad Business

Walmart May Buy Vizio for Over $2B to Boost Ad Business

News by Roberto Orosa
Published: February 14, 2024

Walmart is in active discussions to acquire Vizio, a leading smart television manufacturer, for a sum exceeding $2 billion.

According to an exclusive report from The Wall Street Journal, sources familiar with the matter revealed that the potential deal aims to bolster the retail giant's advertising business by expanding its reach into the TV ad space.

Vizio, recognized for its affordable TV offerings, has been a key player in Walmart's electronics lineup, with Walmart and its Sam’s Club chain historically serving as Vizio's largest customer base.

The move to acquire Vizio represents Walmart's strategic initiative to capitalize on the growing demand for targeted advertising opportunities, particularly in the realm of smart TVs.

What This Means for Walmart

According to industry analysts, Walmart's interest in Vizio underscores its commitment to diversifying revenue streams beyond its core grocery business.

The acquisition would provide Walmart with a broader spectrum of advertising inventory and valuable viewer data, enabling more targeted and effective advertising campaigns.

Dave Morgan, CEO of Simulmedia, an ad tech company, emphasized the potential impact of the deal in a statement, "[It] gives Walmart control over a massive amount of proprietary data — particularly viewing data, which along with its data on what people are buying — is massively important."

In addition to expanding its advertising reach, the acquisition of Vizio would also grant Walmart access to the television manufacturer's operating system, enhancing Walmart's capabilities in the rapidly evolving smart TV market.

By leveraging Vizio's technology, Walmart aims to create synergies between its advertising unit, Walmart Connect, and Vizio's smart TV platform.

The proposed acquisition comes amidst intensifying competition among retailers for a share of the rapidly growing retail media advertising market.

Companies like Best Buy, Kroger and Instacart have entered the picture, reflecting the increasing demand from advertisers to leverage retail platforms to reach consumers directly.

Analysts predict that the retail media advertising market in the United States is poised to reach $59.6 billion in ad revenue this year, marking a significant increase from previous years.

Editing by Katherine 'Makkie' Maclang

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