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Walmart's $2.3B Vizio Acquisition Signals Major Push into Smart TV Advertising

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Walmart Acquires Vizio for $2.3B to Expand Advertising Reach

Walmart has completed its acquisition of smart TV maker Vizio in a $2.3 billion all-cash deal, marking a major push into connected TV advertising. The deal, which closed following federal regulatory review, positions the retail giant to compete more effectively with advertising powerhouses like Amazon and Roku.

Under the agreement, Vizio will operate as a wholly-owned subsidiary of Walmart, with founder William Wang continuing as CEO. The company will be integrated into Walmart's U.S. segment, and Vizio's stock will be delisted from the New York Stock Exchange.

The acquisition gives Walmart direct access to Vizio's 19 million active SmartCast accounts and its profitable advertising platform. By combining Vizio's TV operating system with Walmart Connect, its retail media business, Walmart aims to create new advertising opportunities that connect brands with consumers.

The merger brings together Walmart's extensive retail data with Vizio's viewer information, enabling more targeted advertising and enhanced shopping experiences. Walmart will also gain control of Vizio's WatchFree+ streaming service, which offers free content supported by ads.

"Vizio offers great products at great prices that customers love," said Seth Dallaire, Executive Vice President of Walmart U.S. He added that pairing Vizio's advertising capabilities with Walmart Connect will allow for further investment in customer-focused initiatives.

The deal is expected to slightly decrease Walmart's earnings per share in the fourth quarter of fiscal year 2025 and fiscal year 2026 due to transaction-related costs. However, the long-term strategy focuses on strengthening Walmart's position in the growing connected TV advertising market, which is projected to see substantial growth in coming years.