Walmart has announced a $2.3 billion deal to acquire budget TV maker Vizio, with the US supermarket giant doubling down on its growing US advertising business.

Walmart Connect is Walmart's end-to-end closed-loop media platform that enables brands to buy ads and measure performance across the entire Walmart digital ecosystem. It generates more than $3 billion annually for the company, and saw ad sales increase by 22 per cent in the most recent quarter.

Rumours of the deal first emerged last week from a Wall Street Journal report.

In a press release, Walmart said that the deal would enable it to create new opportunities to help advertisers connect with customers, “empowering brands with differentiated and compelling opportunities to engage at scale and to realise greater impact from their advertising spend with Walmart”.

Seth Dallaire, executive vice president and chief revenue officer, Walmart US, said: “There is a lot to be excited about with this acquisition. We believe VIZIO’s customer-centric operating system provides great viewing experiences at attractive price points. We also believe it enables a profitable advertising business that is rapidly scaling.

“Our media business, Walmart Connect, is helping brands create meaningful connections with the millions of customers who shop with us each week. We believe the combination of these two businesses would be impactful as we redefine the intersection of retail and entertainment.”

The Vizio brand faces stiff competition in the low-cost TV space from the likes of Roku and Amazon.

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