Walmart is reportedly in talks to acquire smart television maker Vizio for over $2 billion.
The discussions are ongoing, and a deal may not happen, the Wall Street Journal (WSJ) reported Tuesday (Feb. 13), citing unnamed sources.
Reached by PYMNTS, spokespeople for both Walmart and Vizio declined to comment on the report.
This potential deal aims to boost Walmart’s advertising business and strengthen its position in the market against competitors like Amazon, according to the report.
Walmart has historically been Vizio’s largest customer, with the brand being the top-selling television brand at Walmart stores, the report said.
The move comes as major retailers recognize the importance of consumer data and ad space in their efforts to compete with Amazon, per the report. Amazon is one of the largest players in the advertising industry.
Furthermore, Walmart faces increasing competition from other companies, such as Best Buy, Kroger and Instacart, that are also vying for a share of ad revenue in the retail media space, according to the report.
If the deal goes through, Walmart would have access to Vizio’s TV operating system, ad inventory and ad viewership data, the report said. This would allow Walmart to offer targeted advertising to viewers on Vizio TVs, potentially linking those ads to the purchase of goods. The vast amount of proprietary data that Walmart would gain control over, particularly viewing data, is seen as a significant advantage in the advertising industry.
Walmart is already testing the sale of ads through connected TVs, and acquiring Vizio would make this prospect even more appealing to potential advertisers, per the report.
Vizio, founded in 2002, has expanded its offerings beyond low-priced TVs to include advertising and streaming services, the report said.
The retail media ad industry is poised to reach $100 billion by 2026, PYMNTS reported in January.
During a recent trade show, Walmart reported that it had a wider reach than the largest TV network and that retailers were increasingly allocating their marketing budgets to in-store uses.
In March, AdTech platform Innovid announced a deal with Walmart Connect media network to serve personalized ads across streaming video and connected TV.