A Vizio TV on display at a store on February 13, 2024 in San Rafael, California.
Justin Sullivan | Getty Images
Vizio stock soared after news of the deal first emerged last week, closing at $9.53 on Friday. Shares rose 15% in premarket trading on Tuesday.
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 has sought 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.
The move comes as Walmart seeks to compete with Amazon's growing advertising space.
With Walmart managing the Vizio platform, companies that advertise with retailers will have greater reach. Walmart said in a news release that Vizio's SmartCast system has 18 million active accounts.
The company also said it could offer “innovative television, in-home entertainment and media experiences” after acquiring a TV maker.
