Walmart is in talks to buy TV maker Vizio: Report

Walmart is in talks to buy TV maker Vizio: Report

Walmart Inc. is in talks to the buy TV maker Vizio Holding Corp. for more than $2 billion, the Wall Street Journal reported, citing people familiar with the situation.

Discussions are ongoing and a deal may not materialize, the Journal reported. Walmart and Vizio declined to comment.

Shares of Vizio, which makes smart TVs, home theater displays and sound bars, jumped 25% at the close of trading in New York, with gains continuing during after-hours trading. The advance brought the Irvine, California-based company’s market capitalization to about $1.9 billion. Walmart shares slipped less than 1%.

The acquisition of a television maker could benefit Walmart’s lucrative advertising division, which the company has been building up as it seeks to go beyond the core business of retailing. Web-connected smart TVs can be used to engage more directly with consumers and deliver personalized ads to viewers.

Walmart Connect, as the advertising unit is called, has been adding more capabilities online and in stores. The company in 2021 brought on Seth Dallaire, a former executive at Instacart, as its chief revenue officer to lead its advertising, membership and data businesses, among others. Kroger Co. and other Walmart competitors have also been growing their advertising business.

If the deal comes to fruition under the reported terms, it would be one of the biggest deals for the Bentonville, Arkansas-based company in recent years. In July, Walmart said it had paid $1.4 billion to buy Tiger Global Management’s remaining stake in the Indian retailer Flipkart. Bloomberg News reported in September that Walmart was exploring the purchase of a majority stake in ChenMed, a closely held operator of primary care clinics for seniors.

Walmart has moved away from some of the startup brands it acquired in the 2010s, selling plus-size apparel maker Eloquii and Bonobos menswear last year. Walmart had purchased a number of companies under the direction of former e-commerce chief Marc Lore, who came to Walmart following the retail giant’s purchase of Jet.com for $3.3 billion in 2016. Walmart has instead renewed focus on building its in-house apparel business and expanding the selection of goods available on its website from third-party sellers.