In a surprising move, retail giant Walmart has announced the acquisition of TV manufacturer Vizio for $2.3 billion. While it would be logical for anyone to think that this acquisition is a strategic move from Walmart to turn offerings from Vizio into its in-house TV brand, the retail giant has already indicated that the actual reason for Vizio’s acquisition isn’t its TVs. Instead, Walmart seems more interested in the SmartCast operating system that powers all Vizio TVs.
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Walmart seemingly wants to boost its ads business using the reach of SmartCast. For the uninitiated, Vizio’s SmartCast operating system allows users to stream free ad-supported content on their TVs. By going this route, Walmart expects to become a player of note in the booming world of connected TV advertising. Given that there are over 18 million active SmartCast accounts, there is no denying that the platform offers a wealth of advertising potential.
Walmart’s latest move comes close on the heels of reports about advertisers warming up to showcasing their ads on streaming platforms. If things turn out as planned, Walmart’s acquisition of Vizio could end up helping the company create an entirely new revenue stream that would complement the company’s existing low-margin retail business. Walmart’s existing ad business hit sales figures of $3.4 billion in 2023, according to BusinessWire, which accounted for less than 1% of the company’s sales. It’s certainly not the only game-changing investment Walmart has tried in recent memory.
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