Walmart is in discussions to purchase smart TV maker Vizio for over $2 billion, per The Wall Street Journal. The deal, still under negotiation, aims to expand the retailer’s ad reach beyond stores.
The acquisition highlights a trend among retailers, including Best Buy, Kroger and Instacart. They all aim to capitalize on advertising revenue streams.
Following the news, Vizio, historically a top TV brand at Walmart, saw its shares surge around 25% on Tuesday, nearing a $2 billion valuation, while Walmart’s shares went down by 1%.
The proposed offer exceeds Vizio’s market cap by nearly 30% from the previous day.
Advertisers continue to flock to the retail media space, with US ad revenue to reach $59.6 billion this year.