Walmart, Vizio in talks that could lead to a more than $2B deal

In what would be a major boost to its retail media network, Walmart is currently in talks with smart-television manufacturer Vizio to buy the company at a price of more than $2 billion, the Wall Street Journal is reporting.

If the deal goes through, Walmart would command more than a fifth of the television market in the U.S., and the move would also beef up the Bartonville, Ark.-based retailer’s Connect advertising business.

Walmart continues to monetize its reach of shopper data in an attempt to sell ads in stores on digital displays, connected TVs, radio, and on its website. 

Owning Vizio would allow CPGs to advertise on screens in 5,000 stores that pull in 130 million shoppers each week. 

Vizio would give Walmart access to an active user base of nearly 18 million people, and the TV manufacturer also has a software platform business with advertising revenue growth of over 27% at a more than 60% margin rate. 

Walmart has been good for Vizio as well, selling 70% of the Irvine, Calif.-based manufacturer’s TVs while giving it the No. 1 shelf-share position. 

Still, sourcing people close to the situation, WSJ said even though talks between Walmart and Vizio are ongoing the deal might not happen.

Walmart declined to comment.

According to a report from Insider Intelligence, Walmart’s Connect pulled in around $3 billion last year and has been producing double-digit growth since its launch in 2021. Walmart also believes the biggest area of growth for its ad business will come from selling ads at store locations. 

Related:Mass retailers like Walmart continue to pick up online grocery customers

Reuters reports that retail media networks (RMN) have become the fastest-growing sector of the U.S. ad business and Insider Intelligence estimates RMNs could generate around $60 billion in sales in 2024.