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A Vizio TV on display at a store on February 13, 2024 in San Rafael, California.
Justin Sullivan | Getty Images
Walmart has agreed to buy television maker Vizio, the companies announced Tuesday, as the nation’s largest retailer grows its lucrative advertising business.
Walmart will acquire Vizio for $2.3 billion in cash, or $11.50 per share. Vizio stock soared after news of the deal first emerged last week, but closed at $9.53 on Friday.
The retail giant announced the acquisition while reporting fourth-quarter earnings.
Walmart and its Sam’s Club warehouse chain have been major sellers of Vizio devices for years. But when Walmart bought the company, it touted the potential to expand its advertising business through Vizio’s SmartCast operating system, which allows users to stream free ad-supported content on their TVs.
As the retail giant seeks to boost profits, it is working to expand its media business, Walmart Connect, which has higher profit margins than selling food and clothing. The division’s advertising sales rose 22% in the fourth quarter.
“We believe VIZIO’s customer-centric operating system delivers a superior viewing experience at an attractive price point, and we believe it will enable a rapidly expanding and profitable advertising business. ,” said Seth Dallaire, Executive Vice President and Chief Revenue Officer, Walmart US. statement.
This story is developing. Please check back for the latest information.
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