Walmart is reportedly in talks to acquire Vizio’s TV business for a whopping $2 billion, as revealed by The Wall Street Journal. This potential acquisition could position Walmart to rival the likes of Roku and Amazon in the affordable smart TV market.
Vizio’s smart TV platform not only provides a wide array of customer data but also generates revenue through personalized ads and subscription fees. With this acquisition, Walmart could gain access to Vizio’s customer data and tap into the lucrative revenue stream from personalized ads and subscription fees.
After years of integrating its Roku operating system into other TVs, Roku recently ventured into manufacturing its own line of smart TVs, including plans to introduce more advanced Mini LED TVs. Similarly, Amazon has been expanding its Fire TV lineup and increasing ad placements on its TV operating system.
Walmart has been proactive in the advertising space, collaborating with an advertising company to deliver personalized ads on connected TVs and partnering with Roku to offer shoppable ads on TVs. The potential acquisition of Vizio could also enable Walmart to leverage its ownership to sell ads on TVs within its stores, a strategy it has already been implementing with other TV brands and self-checkout aisles.
Both Vizio and Walmart have refrained from commenting on the reported acquisition. However, if the deal materializes, it could significantly reshape the competition in the smart TV market, potentially positioning Walmart as a formidable player against Roku and Amazon.
