Walmart is set to acquire Vizio, a smart TV maker, for $2.3 billion to bolster its advertising business and compete with Amazon.
The deal would grant Walmart access to Vizio's SmartCast operating system, enabling it to offer advertising opportunities to suppliers.
Walmart has been strengthening its media and ad business, with its global advertising revenue reaching approximately $3.4 billion last year.
Amazon recently announced plans to charge Prime members an additional fee to keep movies and TV shows ad-free, prompting competition in the streaming space.
Vizio's SmartCast system boasts 18 million active accounts and has witnessed a 400% growth since 2018.
Vizio's focus on ad revenue has led to the majority of its gross profit coming from ads, with more than 500 direct advertisers on its platform.
Following the announcement, Vizio shares surged, while Walmart's shares also experienced gains, contrasting with a decline in Roku's stock.