Vizio TVs are displayed in a store on February 13, 2024 in San Rafael, California.
Justin Sullivan | Getty Images
Walmart has agreed to buy TV maker Vizio, the companies announced Tuesday, as the largest U.S. retailer works to grow its highly profitable advertising business.
Walmart will acquire Vizio for $2.3 billion, or $11.50 per share, in cash. Vizio shares, which rose after reports of the deal first emerged last week, closed at $9.53 on Friday.
The big box retailer announced the acquisition as it reported fourth-quarter earnings.
Walmart and its Sam's Club warehouse chain have long been big sellers of Vizio devices. But in purchasing the company, Walmart touted the potential to boost its advertising business through Vizio's SmartCast operating system, which allows users to stream free ad-supported content to their TVs.
As it seeks higher profits, the retail giant has tried to expand its Walmart Connect media business, which comes with larger profit margins than selling groceries or apparel. Ad sales for this segment grew 22% in the fourth quarter.
“We believe VIZIO's customer-focused operating system delivers great viewing experiences at attractive prices. We also believe it enables a profitable advertising business that is expanding rapidly,” said Seth Dallaire, executive vice president and chief revenue officer, Walmart US. statement.
This story is evolving. . Please check back for updates
“Beer aficionado. Gamer. Alcohol fanatic. Evil food trailblazer. Avid bacon maven.”