Feb. 20 (UPI) -- Walmart announced on Tuesday that it will purchase smart television maker Vizio and its operating system for $2.3 billion.
Walmart agreed to buy Vizio for $11.50 per share in cash, which will allow it to access Vizio's 18 million smart TV account along with enhancing its advertising possibilities. Vizio said its accounts have grown 400% since 2018 and has more than 500 direct advertising partnerships.
"There is a lot of excitement about with this acquisition," Walmart U.S. Executive Vice President and CEO Seth Dallaire said in a statement. "We believe Vizio's customer-centric operating system provides great viewing experiences at attractive price points.
"We also believe it enables a profitable advertising business that is rapidly scaling."
Vizio's smart TV operating system, SmartCast allows users to stream content for free with ads. Its advertising business, Platform+ business, accounts for the bulk of Vizio's gross profits.
"We believe this is the ideal next chapter in Vizio's history," said William Wang, CEO of Vizio in a statement. "By bringing our capabilities and resources together, we'll drive innovation and create even more value for our customers."
While Vizio's board of directors has already approved the deal, it now has a 45-day window to terminate the merger.
The Vizio announcement comes on the heels of the U.S. largest retailer reporting e-commerce sales over the holiday season jumping 23% over the past year. Walmart stocks increased 5% in early trading on Tuesday.
