Walmart reported strong Q4 earnings, surpassing expectations and increasing its dividend payout by 9% [8749469a]. As part of its strategy to compete with Amazon in the advertising space, Walmart has agreed to acquire consumer electronics company Vizio for $2.3 billion [d5b571de] [4891f84d] [8749469a]. The deal will give Walmart access to Vizio's SmartCast operating system, which has 18 million active accounts and has experienced significant growth since 2018 [d5b571de] [8749469a]. This will enable Walmart to offer suppliers the opportunity to display ads on streaming devices, expanding its advertising reach and potential connection to households [d5b571de] [4891f84d] [8749469a].
Walmart's global advertising business grew by approximately 28% to $3.4 billion last year [d5b571de]. The acquisition of Vizio is expected to further boost Walmart's advertising business, which reported solid revenue growth in the fourth quarter of 2023 [4891f84d] [8749469a].
The purchase of Vizio aligns with Walmart's goal of leveraging advanced technologies and expanding its market control [a36428a6] [4e0664a6] [4891f84d] [8749469a]. It also reflects Walmart's dedication to serving its customers and expanding its market control through innovation [a36428a6] [4e0664a6] [4891f84d] [8749469a].
Walmart shares experienced a 4.7% increase in pre-market trading following the announcement [4891f84d] [8749469a]. The acquisition of Vizio, along with Walmart's technological advancements, sustainability initiatives, and commitment to innovation, demonstrates the company's commitment to serving its customers and expanding its market control [a36428a6] [4e0664a6] [4891f84d] [d5b571de] [8749469a].