Walmart (NYSE:WMT) is currently in talks to buy out Vizio (NYSE:VZIO) for over $2 billion, according to the Wall Street Journal. In a follow-up report by Reuters, this deal is noted as potentially giving Walmart control over more than a fifth of the U.S. Television market.
A prominent manufacturer of smart TVs, Vizio products are currently sold in wholesale outlets such as Walmart, Target and Best Buy. Whether or not this buyout will potentially affect the distribution of Vizio products is yet to be determined.
According to Reuters’ article, nearly 70% of all Vizio TVs sold have been sold at Walmart, with Vizio occupying the number one shelf-share position in the store.
Talks of Vizio’s buyout come at a time where Walmart has been increasingly pivoting into more ad-focused revenues, utilizing user data to sell more targeted ads on store assets, such as smart TVs.
This advertorial business, named Connect, has, in fact, been growing at a double-digit pace according to a report from Insider Intelligence with Walmart’s CFO naming the Connect business as one of the company’s fastest growing business arms.

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The idea, in this scenario, is that Walmart would be able to gather user data from Vizio smart TVs sold to consumers to better create and send out targeted ads found within Walmart store spaces, according to the WSJ.
Vizio Buyout Potentially Points Towards Future of Smart TV Monetization
More recently, the potential of selling ads or products through smart TVs as a recurring revenue has become a topic of increasing interest among manufacturers, with many stating that ad-supported TVs are going to be the future moving forward.
At CES 2024, wireless TV manufacturer Displace touted an AI powered storefront interface that would allow viewers to purchase items seen in shows through Displace’s own storefront. LG has also been toying with the idea of subscription based smart TV services with free versions paid for by ads.
There is also Telly, a purportedly free TV that makes its money by selling ads and user data to advertisers. Even Roku, through an exclusive deal with Walmart, offers shoppable ads on TVs that use the company’s smart platform.
Following this news, investor sentiment surrounding Roku, a fellow competitor of Vizio in the budget smart TV category seemed to drop, with the company’s stock tumbling 9% on Tuesday, while Vizio’s spiked 24.6%.
In recent years, Roku has sought to differentiate itself by producing its own smart TV product line after years of selling its software on other devices. The company also reportedly has its own exclusive deal with Walmart regarding the sale of its devices.
Walmart stock remained largely unshifted following the news. Should the deal go through, it will give Walmart 22% control over the U.S. TV market between Vizio and its private-label Onn brand.
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