Taking a bold step toward integrating technology and retail, Walmart Inc. WMT has concluded its acquisition of VIZIO, which is a leading player in the connected entertainment and smart TV space. VIZIO will become a wholly owned subsidiary of Walmart, with its operations forming part of the Walmart U.S. segment.

This deal, worth $2.3 billion, is likely to reshape how Walmart engages with customers and advertisers. However, the transaction is likely to cause slight earnings per share dilution for Walmart in the fourth quarter of fiscal year 2025 and fiscal year 2026.

Strengthening Customer and Advertiser Engagement for WMT

The acquisition brings VIZIO’s SmartCast Operating System under Walmart’s umbrella, enabling new opportunities to enhance customer experiences and improve product discovery. This move also bolsters Walmart’s advertising capabilities by integrating VIZIO’s profitable ad business into Walmart Connect, the retailer’s fast-growing omnichannel media platform. The combination is expected to help advertisers reach customers more effectively and at scale while creating additional value for Walmart’s retail network.

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VIZIO: A Strategic Fit for Walmart

VIZIO’s growth in the smart TV market has been substantial, with active SmartCast accounts increasing by 400% since 2018 to surpass 19 million. Its ad-supported platform, which has become the cornerstone of its profitability, aligns well with Walmart Connect’s momentum, which reported a 26% increase in the third quarter of fiscal 2025 and saw a 60% expansion in its advertiser base. 

Walmart Connect has been driving innovation by developing unique omnichannel solutions that span on-site and off-site digital platforms and physical stores, enabling brands of all sizes to achieve mutual growth. By combining these capabilities, Walmart aims to further develop its retail media strategy, providing a cohesive platform for brands of all sizes to engage with customers across digital and physical channels.

Wrapping Up

This acquisition underscores Walmart’s commitment to evolving its digital ecosystem and diversifying revenue streams. By integrating VIZIO’s tech-driven capabilities and expanding its advertising reach, Walmart is not just enhancing its competitive edge but transforming how brands and customers interact in an increasingly connected world.

This deal represents a significant leap forward in Walmart’s efforts to redefine the boundaries of retail and media convergence. With this acquisition, the omnichannel retailer is set to create a robust platform that connects customers, brands and advertisers in meaningful and innovative ways. 

Walmart, which currently carries a Zacks Rank #3 (Hold), has seen its shares rally 21.1% in the past three months compared with the industry’s growth of 20.4%.

3 Solid Retail Bets

Deckers DECK, a footwear and accessories dealer, currently sports a Zacks Rank #1 (Strong Buy). DECK delivered an average earnings surprise of 41.1% in the trailing four quarters. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Deckers’ current financial-year sales and earnings indicates growth of 13.6% and 12.6%, respectively, from the year-ago reported figures.

Dillard's, Inc. DDS, a department store retailer, currently sports a Zacks Rank #1. DDS has a trailing four-quarter earnings surprise of 8.8%, on average.

The Zacks Consensus Estimate for Dillard's current financial-year sales suggests a dip of 5.4% from the year-ago reported figure.

Kroger KR, a renowned grocery retailer, currently carries a Zacks Rank #2 (Buy). KR has a trailing four-quarter earnings surprise of 8.2%, on average.

The Zacks Consensus Estimate for Kroger’s current quarter earnings per share implies growth of 3.2% from the year-ago reported numbers.

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