Walmart Is Buying VIZIO for Its Ads Business

Walmart is acquiring VIZIO to the tune of $2.3 billion.

The acquisition will bolster Walmart’s advertising business, which previously lacked a substantial foothold in the streaming market.

Naturally, this deal is subject to regulatory approval and may be canceled if VIZIO receives a better offer.

Despite its weak global presence, VIZIO is currently thethird-largestTV brand in the United States.

This achievement is largely due to VIZIO’s pricing and advertising strategies.

The company sells super-affordable TVs at a loss and makes the money back through advertising.

Walmart explicitly points to VIZIO’s advertising capabilities as the reason for this acquisition.

It will also gain 500 advertiser relationships that are currently maintained by VIZIO.

Of course, Walmart already sells a line of Onn-branded TVs and streaming sticks.

A bespoke operating system like SmartCast gets rid of the middleman and opens the door to new advertising opportunities.

Even if we ignore the ads business, VIZIO SmartCast may become Walmart’s answer to Amazon Fire TV.