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Walmart Looking To Purchase TV Manufacturer Vizio for $2 Billion

Walmart in Talks to Acquire Vizio for Over $2 Billion

Walmart is reportedly in discussions to acquire smart-television manufacturer Vizio for more than $2 billion, according to a report from the Wall Street Journal on Tuesday. If successful, this move could significantly strengthen Walmart’s advertising business and expand its footprint in the US television market.

The reported offer price represents a substantial premium over Vizio’s market capitalization, with Vizio shares surging following the news. Walmart’s interest in Vizio comes at a time when the retail giant is increasingly leveraging its vast reach and shopper data to drive advertising sales across its various platforms, including its website and store assets.

The potential acquisition of Vizio would not only provide Walmart with a broader array of screens to display advertisements but also grant access to Vizio’s active user base and software platform business. With Walmart’s emphasis on growing its ad business, dubbed Walmart Connect, the acquisition aligns with the company’s strategy to evolve its revenue streams beyond traditional retail.

Walmart’s finance chief has highlighted the rapid growth and profitability of Walmart Connect, emphasizing its potential to reshape the company’s profit and loss statement in the coming years. As traditional ad sellers tighten restrictions on third-party data sharing, retailers’ ad businesses, such as Walmart Connect, have become increasingly attractive to advertisers.

Vizio’s significant presence in Walmart stores, with the majority of its TVs sold at the retailer, further underscores the strategic value of the potential acquisition. By combining Vizio’s market-leading position in smart TVs with Walmart’s retail infrastructure, the deal could potentially give Walmart control over a sizable portion of the US television market.

However, discussions between Walmart and Vizio are ongoing, and a deal is not guaranteed. The final decision rests with Vizio’s CEO, William Wang, who holds majority voting rights in the company. Nevertheless, the potential acquisition underscores Walmart’s commitment to expanding its digital advertising capabilities and diversifying its revenue streams in the evolving retail landscape.

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Ruben Jay
Ruben Jay
Ruben Jay is an American broadcaster, media blogger, and podcast host. Currently, Ruben is the President of MultiMediaMouth.com and the executive producer and host of the popular podcasts You’re My Best Friend and ON AIR with Ruben Jay, exclusively on MultiMediaMouth.com. Follow Ruben on Instagram, Twitter, and Tiktok @TheRubenJay.

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