In a move that could shake up the television and advertising landscapes, retail giant Walmart announced it is acquiring smart TV maker Vizio for a cool $2.3 billion. While the deal is still awaiting regulatory approval, it’s clear Walmart has its sights set on a bigger prize: the lucrative world of advertising.
If the agreement is finalized, Walmart will have access to Vizio’s SmartCast operating system, which will enable the retail giant to provide its suppliers with streaming device advertising.
on a further 16% surge, Vizio shares, which had already surged on the initial reports of the deal last week, closed at $11.08 on Tuesday.
Vizio isn’t just any TV maker. Their SmartCast operating system beams ads directly to millions of living rooms, making them a valuable player in the connected TV (CTV) market. Think targeted commercials during streaming marathons or sponsored content recommendations. This access to eyeballs (and data) is precisely what Walmart craves.
With 18 million active customers, Vizio’s SmartCast system has expanded 400% in only a single year. According to the companies, over 500 direct advertisers use Vizio’s platform, and ads now make up the majority of the company’s gross profit.
This deal reflects a broader trend in retail media. Giants like Amazon and Target are also vying for a piece of the CTV ad pie. With competition heating up, expect to see more innovation and disruption in the way we watch TV and the ads we see along the way.
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