Walmart says it plans to acquire Vizio for $2.3 billion

BENTONVILLE, Ark. (KNWA/KFTA) — Walmart announced plans to acquire television maker Vizio for $2.3 billion as it attempts to expand its rapidly growing advertising business to compete with Amazon. In a Tuesday news release, Walmart said the acquisition of Vizio and its SmartCast Operating System will let them connect and serve customers in new ways such as in-home entertainment, innovative television and media experiences.

"It would also create new opportunities to help advertisers connect with customers, empowering brands with differentiated and compelling opportunities to engage at scale and to realize greater impact from their advertising spend with Walmart," the release said.

Walmart mentions that the combination will help accelerate the retail giant's media business in the U.S., Walmart Connect, and bring together its reach and capabilities with Vizio's advertising solutions business.

“There is a lot to be excited about with this acquisition,” said Seth Dallaire, executive vice president and chief revenue officer of Walmart U.S. “We believe Vizio’s customer-centric operating system provides great viewing experiences at attractive price points. We also believe it enables a profitable advertising business that is rapidly scaling.

“We believe this is the ideal next chapter in Vizio’s history. By bringing our capabilities and resources together, we’ll drive innovation and create even more value for our customers,” said William Wang, chief executive officer of Vizio.

The release says the Vizio Board of Directors unanimously approved the transaction and when it is completed, Vizio's business will be reported as part of Walmart's U.S. segment. Walmart, which reported sales and profit Tuesday that topped Wall Street's expectations, rose 3.1% to $175.66 per share.

Walmart has been ramping up its media and ad business with Walmart Connect, giving advertisers access to Walmart’s massive customer base. In its earnings release on Tuesday, Walmart said its global advertising business grew approximately 28% to $3.4 billion last year.

The Associated Press contributed to this report.