Walmart is buying Vizio for $2.3 billion as it seeks new frontiers for its advertising business, the companies said Tuesday.
Walmart said the deal will give its Walmart Connect advertising division new ways to reach customers through in-home media.
“Our announcement today that we’ve agreed to acquire Vizio gives us the opportunity to reach and serve customers in new ways and connect more dots for those that advertise with us,” Walmart CEO Doug McMillion said Tuesday during the retailer’s earnings call with analysts.
Under the all-cash deal, Walmart would pay $11.50 per share to acquire Vizio, reflecting a 54 percent premium over the TV maker’s share price before the Wall Street Journal last week broke news of a potential acquisition.
Vizio stock rose 15 percent in premarket trading Tuesday, while Walmart gained about 3 percent.
This is a developing story and will be updated.
Jaclyn Peiser contributed to this report.
