Walmart announced on Tuesday (Feb 20) it will buy smart television maker Vizio for US$2.3 billion in cash, boosting the retail giant’s advertising and media businesses.

The US shopping behemoth, which also reported annual sales growth on Tuesday, gains access to Vizio’s more than 18 million accounts as another source of strengthened potential connection to those households.

In its press release, Walmart praised Vizio’s mission of delivering “immersive entertainment” through a “customer-centric platform” that lets viewers stream content for free by watching ads.

Vizio’s operating system “provides great viewing experiences at attractive price points,” said Walmart chief revenue officer Seth Dallaire, adding that the transaction will help “redefine the intersection of retail and entertainment.”

Walmart announced the deal along with the release of fourth-quarter earnings, in which it reported solid revenue growth of 5.7 per cent to US$173.4 billion.

Profits fell 12.4 per cent to US$5.5 billion because, it said, of higher equity investment-related gains in the prior year.

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The quarter included a solid four per cent rise in comparable sales in the company’s namesake US stores, which account for about two-thirds of sales.

Walmart pointed to share gains in grocery and general merchandise, primarily among higher-income households.

For all of last year, Walmart’s revenues rose six per cent to US$648.1 billion.

Amazon, which is often seen as Walmart’s chief rival, reported 2023 revenues of US$574.8 billion. AFP