Walmart acquired Vizio.

Walmart has completed the acquisition of Vizio following the closure of a deal valued at $2.3 billion. This transaction was announced in February and is considered a significant step to strengthen Walmart's advertising business. Vizio's advertising and data division, known as Platform Plus, is crucial, as it represents the company’s entire gross profit.

The large amount of data that Vizio possesses could greatly benefit Walmart, which has already begun using consumer information to target ads on platforms like Disney Plus and Hulu. This acquisition is expected to allow Walmart to increase its sale of advertising space on Vizio televisions, both in stores and possibly in customers' homes.

However, the purchase has raised concerns among privacy advocates, given that Vizio has faced issues over its advertising practices and data tracking in the past. In 2017, the company paid $2.2 million to settle a Federal Trade Commission lawsuit for tracking viewers without their consent.

With the acquisition, Vizio could improve its competitiveness against other affordable TV brands that rely on advertising for revenue. For example, Roku, which began selling its own televisions last year, reported $908.2 million in advertising and subscription sales during the third quarter of 2024, achieving an average revenue per user of $41.10, while Vizio’s latest earnings report indicated an income of approximately $37.17 per user.

Both companies will continue to operate independently for the time being, and Vizio CEO William Wang will retain his position. Seth Dallaire, Executive Vice President and Chief Growth Officer of Walmart US, noted that Vizio has successfully evolved its business model, particularly in the advertising realm, and the integration with Walmart Connect will enhance its investment capabilities for the benefit of customers.