Walmart Reportedly in Talks to Buy VIZIO as Advertisers Shift to Retail Media Space
The move is all about acquiring space for more Walmart ads, as the company tries to compete with Amazon.
Walmart has plenty of experience in selling new TVs, but what about in making them? That would be quite new for the retail giant, but a new report from The Wall Street Journal suggests that potential reality may not be too far away. The Journal reports that Walmart is in talks to acquire TV manufacturer VIZIO in a deal that could be worth more than $2 billion.
- Walmart’s interest in VIZIO is primarily in the name of growing its advertising business.
- VIZIO screens could be used to advertise for Walmart in the same way Fire TV screens advertise for Amazon.
- The deal would also give Walmart control over a streaming service of its own in VIZIO’s WatchFree+.
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Is Walmart Buying VIZIO?
The Journal report indicates that no deal between Walmart and VIZIO has been finalized and that the sale could still fall apart, but discussions are ongoing for what could be a major deal for both sides. The two companies have a longstanding relationship; historically speaking, Walmart has been the biggest buyer of VIZIO smart TVs for retail sale.
Walmart is reportedly primarily interested in buying VIZIO in order to help distribute ads, according to the Journal. Buying VIZIO would give Walmart control over its TV operating system (OS), which would allow Walmart to place and sell ads wherever it wanted inside the VIZIO interface.
Buying VIZIO would also give Walmart control over TV ad sales and viewership data for the company’s TV sets. This is especially critical for a big retailer like Walmart, which would have control over which ads were shown on its devices and then be able to track data from those ads as it correlates to sales of products at Walmart stores across the world.
Will Buying VIZIO Allow Walmart to Compete with Amazon?
As Walmart battles with Amazon for supremacy in the retail giant space, it has to close the gap between the two companies in any way it can. Amazon makes a great deal of revenue from advertisers, and recently introduced full-screen, autoplay ads to its Fire TV device interfaces. Buying VIZIO would allow Walmart to make a similar move.
Purchasing VIZIO would also give Walmart full control over that company’s WatchFree+ streaming service, which allows VIZIO smart TV owners to stream live channels and on-demand titles at no cost. Walmart would become a streaming service owner for the first time, and would be able to put more of its ads alongside WatchFree+ content if it chose to do so. Amazon owns a free ad-supported streaming platform as well, in the form of Freevee.
Amazon is creating its own TV operating system, in large part to have greater control over ad distribution and the data that comes with it. That new operating system is rolling out on some Fire TV devices now, as Amazon shifts away from its reliance on Android to create the software its devices run on.
Walmart currently sells an expansive selection of smart TVs, already highlighted by VIZIO products, but also including Walmart’s ONN brand, Roku, and even numerous brands that use the Amazon Fire TV OS.
Walmart is clearly willing to go to great expense to increase its presence in advertising. According to the Journal, retail media advertising is expected to hit $59.6 billion in 2024, which would be a 30% increase over 2023’s numbers. Walmart is one of the world’s largest companies, and if it wants to continue competing with Amazon, it cannot continue to be shut out of this marketplace for much longer. That’s why it’s seriously considering laying out billions of dollars to buy VIZIO and acquire a smart TV operating system of its own.
VIZIO WatchFree+
WatchFree+ is VIZIO’s free streaming service, available on its SmartCast TVs. There are 260+ free channels and 6,000 titles on demand, providing immediate access to live and local programming and a wide library ranging from thousands of movies, news, sports, music, kids & family, multicultural, and more. Top channels include CNN, FOX Sports, Hallmark, ION Plus, LEGO Channel, MLB, NBC News Now, and Stories by AMC.