The sale of Paramount Global was no doubt the biggest transaction in the entertainment world in 2024, causing one other such deal to fly a bit under the radar. That would be Walmart’s acquisition of the smart TV maker VIZIO, a deal which was first reported as in the works in February. The two companies announced on Tuesday that the deal is now complete, giving Walmart a chance to control not only a streaming service but a new advertising platform as well.

Key Details:

• The deal is valued at approximately $2.3 billion.
• The acquisition of VIZIO means Walmart now controls the WatchFree+ streaming service.
• VIZIO will also serve as a platform for the spread of the Walmart Connect advertising business.

The transaction that will see VIZIO fall under Walmart’s control was confirmed just a few days after initial reports that such a deal was in the works. Walmart will pay approximately $2.3 billion to acquire the smart TV maker and everything that comes with it.

“VIZIO offers great products at great prices that customers love. They’ve always put customers at the center of their business – and that’s core to Walmart’s values and the omnichannel experiences we’re excited to roll out,” Walmart EVP Seth Dallaire said. “VIZIO has also expertly changed their business over time, like 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.”

The deal was essentially finished months ago, but federal regulations required a waiting period before the purchase could be completed. Now that the waiting period has expired, Walmart’s purchase of VIZIO is official.

“Since the inception of VIZIO, our mission has been to provide incredible value, great technology, and award-winning innovation,” VIZIO CEO and founder William Wang said. “Today, with the tremendous number of resources from Walmart, we will continue to further accelerate that mission around the best home entertainment experience.”

The deal is unlikely to see competing smart TVs and streaming devices lose space in Walmart retail stores, but viewers will likely notice a big uptick in Walmart ads on VIZIO platforms. The Walmart Connect advertising business will get much more space to sell ads thanks to the company’s control of VIZIO’s operating system, and Walmart will also gain control of the VIZIO WatchFree+ streaming service that comes with every set.

It’s a shrewd move from Walmart’s perspective, even though $2.3 billion seems like a lot to lay out to help boost an advertising segment. The deal will allow Walmart to not only sell VIZIO TVs themselves but also to sell ad space and pack the interface with ads for products that viewers can find easily in Walmart stores or on the company’s website.