Retail chain “Walmart” has agreed to acquire TV maker “Vizio,” the two companies announced on Tuesday.
The largest retailer in the United States is looking to expand its profitable advertising business.
“Walmart” will take over “Vizio” for $2.3 billion, or $11.50 per share, in cash. “Vizio” stock closed at $9.53 on Friday following reports of the impending deal. “Walmart” and its subsidiary warehouse chain “Sam’s Club” have long been top sellers of “Vizio” products.
With the acquisition, “Walmart” aims to boost its advertising business through “Vizio’s” “SmartCast” operating system, which allows users to stream free content supported by advertisements on their TVs.
In its quest for higher profits, the retail giant has also been trying to expand its media business, “Walmart Connect,” which generates higher profit margins than grocery or clothing sales. Advertising sales in this sector grew by 22% in the fourth quarter.
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