Walmart will acquire the television maker Vizio for $2.3 billion, the retail chain announced Tuesday.
The retailer said in a press release that the acquisition of Vizio and its smart TV operating system, SmartCast, will help grow Walmart’s media business by “bringing together VIZIO’s advertising solutions business with Walmart’s reach and capabilities.”
“There is a lot to be excited about with this acquisition,” Seth Dallaire, Walmart’s executive vice president and chief revenue officer, said in a statement.
“We believe VIZIO’s customer-centric operating system provides great viewing experiences at attractive price points,” he added. “We also believe it enables a profitable advertising business that is rapidly scaling.”
Walmart CEO Doug McMillon also touted the Vizio acquisition on a company earnings call Tuesday for providing “the opportunity to reach and serve customers in new ways and connect more dots for those that advertise with us.”
The retailer had a strong fourth quarter, its latest earnings report showed, with revenue up 6 percent from last year to $648.1 billion.
Vizio CEO William Wang described the acquisition as “the ideal next chapter” in the company’s history.
“Walmart’s approach is aligned with VIZIO’s mission and vision, and our technology will help bring a scaled, connected TV advertising platform to Walmart Connect,” Wang said in a statement.
“This transaction delivers immediate and compelling value to VIZIO stockholders and is a true testament to the hard work of the entire VIZIO team,” he continued.