Walmart has officially completed its $2.3 billion acquisition of Vizio, a smart TV company that generates most of its revenue from advertising. The deal, announced in February, is expected to significantly boost Walmart's advertising business by leveraging Vizio's advertising and data division, Platform Plus.

Platform Plus accounts for all of Vizio's gross profit, making it a lucrative addition to Walmart's growing advertising business. The retail giant has already started using shopper information to target ads on Disney Plus and Hulu, and the acquisition is likely to open up more opportunities for Walmart to sell ads on Vizio TVs in stores and potentially even on Vizio TVs in people's living rooms.

However, the deal has raised concerns among privacy advocates, given Vizio's history of tracking viewers without their consent. In 2017, the company paid a $2.2 million fine to settle a Federal Trade Commission lawsuit. The acquisition by Walmart may help Vizio address these concerns and compete with other budget-friendly TV brands that rely on advertising as a significant source of revenue.

Vizio faces stiff competition from companies like Roku, which made $908.2 million in advertising sales and subscriptions in the third quarter of 2024, with an average revenue per user of $41.10. Vizio's last earnings report showed it was making about $37.17 per user. Other competitors include Amazon's ad-friendly Fire TVs, Telly, which offers free TVs in exchange for showing persistent advertisements, and an incoming platform from advertising firm The Trade Desk that Sonos will use.

Despite the acquisition, Walmart and Vizio will continue operating independently "for the foreseeable future." Vizio CEO William Wang will also remain in his position. According to Seth Dallaire, the executive vice president and chief growth officer of Walmart US, "VIZIO has also expertly changed their business over time, like building and quickly scaling a profitable advertising business. Pairing it with Walmart Connect will be impactful and allow us to invest in our business even further on behalf of our customers."

The acquisition is a significant move for Walmart as it expands its advertising business and leverages shopper data to target ads more effectively. With the deal complete, Walmart is poised to become a major player in the advertising space, competing with tech giants like Amazon and Google.

The implications of this deal extend beyond the advertising space, as it highlights the growing importance of data and targeted advertising in the tech industry. As more companies focus on leveraging user data to drive revenue, concerns around privacy and data tracking are likely to continue to grow.

In conclusion, Walmart's acquisition of Vizio marks a significant shift in the advertising landscape, with the retail giant poised to become a major player in the space. As the deal unfolds, it will be important to monitor its impact on the industry and the implications for user privacy.