A new business is coming to Walmart soon, and this is because the retail company is already discussing its plans to acquire Vizio with a massive estimated $2 billion sellout. The goal for Walmart is to grow its advertisement business which it may soon bring via Vizio's TVs, one that would allow the company to have a better competitive edge against its Big Tech rival, Amazon.
Moreover, this acquisition would help boost more of the company's diversity rather than relying on selling goods and products alone in its physical and online stores.
Walmart, Vizio Acquisition Now in Talks for $2 Billion
Scott Olson/Getty Images
The Wall Street Journal recently reported that Walmart is now in talks with Vizio for a possible acquisition of the company, with an estimated $2 billion price asked for the sale of its entirety. Its main focus is to grow more of its ads business which Vizio will play a massive part in, with Vizio considered by Walmart as the largest television brand that the retailer sold.
The focus of this acquisition is to boost more of its advertising revenue rather than create and sell more low-price TVs like those found in Vizio's lineup.
Moreover, 9to5Mac said that this would help diversify more of Walmart's business, one that would help them move away from their top branding as a grocery and product retailer.
In 2022, Walmart Connect made a whopping $2.7 billion in global revenue because of its ads, something that it wants to replicate, made possible by Vizio's TVs. The company also took into account that Vizio earned more from selling advertising and viewer data, alongside partnerships, rather than its hardware.
Walmart
An example centers on Walmart's advertising unit featuring a brand that sells inside its retail stores, and with Vizio, will give customers more idea and awareness from it and have them buy it, with Walmart connecting the sale from ads to purchase.
Walmart and Vizio
Walmart had its sights set on pushing more ads that would help grow more of the company, centering on its different campaigns on various platforms that highlight more of what it offers. However, it previously stopped advertising on Elon Musk's X last year because of massive concerns regarding hate speech, back during there was controversy on the platform.
On the other hand, the company that they are in talks with is Vizio, a renowned television manufacturer that brought over their takes on massive smart displays to bring content for its users. While there are many brands available in the world now, Vizio's TVs are one of the more affordable investments for a home or commercial setup, offering famed entertainment features.
While it may be confusing at first that Walmart is looking to acquire a television company, with Vizio as its target entity to bring under the Walmart family and boost more of its business. Its goal is to push ads via Vizio's televisions and it will showcase more of what Walmart has to offer, growing more from its revenue and aspiring Vizio's previous numbers, to compete against Amazon.
