(NewsNation) — Walmart has agreed to pay $2.3 billion to purchase the TV maker Vizio and its SmartCast Operating System, which provides the retail giant with a new and innovative way to connect with its customers and expand advertising, the company said on Tuesday.
The SmartCast system is built into every Vizio smart TV and connects with other digital applications such as Apple Airplay and Amazon Alexa to provide customers with ad-free streaming options.
Walmart said on Tuesday that the acquisition of Vizio will allow for “new and innovative television and in-home entertainment and media experiences.”
“We believe VIZIO’s customer-centric operating system provides great viewing experiences at attractive price points,” Seth Dallaire, Walmart’s executive vice president and chief revenue officer said in a statement issued by the company.
“We also believe it enables a profitable advertising business that is rapidly scaling. Our media business, Walmart Connect, is helping brands create meaningful connections with the millions of customers who shop with us each week. We believe the combination of these two businesses would be impactful as we redefine the intersection of retail and entertainment.”
Walmart said Vizio’s SmartCast system has 18 million active accounts, which the company hopes to tap into to expand its advertising reach. Technology experts also say that the deal could make Walmart a bigger player in video streaming, especially if the retailer obtains a streaming service to run through the Vizio operating system.
Walmart said that it acquired Vizio for $11.50 per share in cash. CNBC reported that Vizio stock spiked last week after The Wall Street Journal first reported a pending deal.
Shares of the stock closed at $9.53 on Friday and jumped 15% to $10.98 per share during early trading on Tuesday. Walmart has been among the top sellers of Vizio products at its stores.
