Walmart has completed its acquisition of the entertainment platform VIZIO, which the US retail giant said will enhance growth at its advertising business, Walmart Connect.

The acquisition will allow Walmart to meet the needs of its customers in new ways and connect with them at scale. Walmart stated that the deal will boost product discovery and enable brands to achieve a greater impact from advertising with Walmart Connect.

Walmart signed the deal in February to acquire VIZIO and its SmartCast Operating System for $11.50 per share in cash, equating to an equity value of approximately $2.3 billion.

Founded in 2002, VIZIO provides immersive entertainment services and a smart TV operating system. It has grown by around 400 per cent since 2018 and has approximately 19 million active accounts.

Walmart noted that VIZIO’s advertising business has a strong portfolio of direct advertising relationships, allowing it to reach customers at scale and contributing to all of the company’s gross profit.

Walmart and VIZIO will continue to operate separately for the foreseeable future, with William Wang continuing to lead VIZIO as chief executive officer.

“VIZIO offers great products at great prices that customers love. They’ve always put customers at the centre of their business – and that’s core to Walmart’s values and the omnichannel experiences we’re excited to roll out,” said Seth Dallaire, executive vice president and chief growth officer, Walmart US. “VIZIO has also expertly adapted their business over time, such as building and quickly scaling a profitable advertising business.

“Pairing it with Walmart Connect will be impactful and allow us to invest in our business even further on behalf of our customers.”

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