Walmart, a major retail chain in the United States, has announced the acquisition of Vizio, an American television manufacturer, in a deal worth $2.3 billion in cash.
The primary rationale behind this deal, as explained by Walmart, is to boost their media business, Walmart Connect, which generates revenue primarily through product advertising across various channels. The company plans to integrate this platform with Vizio’s SmartCast operating system used to stream various content.
The advertising business is a growing segment for retailers like Walmart, with high profit margins (a trend seen with Amazon as well). Vizio’s SmartCast operating system has already registered 18 million accounts and has seen growth rates increase by 400% since 2018, presenting a significant growth opportunity.
TLDR: Walmart acquires Vizio for $2.3 billion to enhance their media business and tap into the growing advertising segment, leveraging Vizio’s SmartCast operating system with 18 million registered users.
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