Walmart Beats Sales Estimates, Announces Vizio Buyout For $2.3 Billion

Walmart commenced the reporting season for US retailers with robust fourth-quarter results, surpassing sales estimates, and revealing its intention to acquire smart-TV maker Vizio for $2.3 billion, as reported by Reuters.

The proposed acquisition of Vizio at $11.50 per share in cash aligns with Walmart's strategy to bolster its rapidly expanding US advertising business. I Photo: Mike Mozart Flickr

The retail giant's shares surged by 3% in premarket trading following the announcement of its strong quarterly performance, an optimistic annual sales forecast, and a notable 9% increase in its dividend, the largest in over a decade.

The proposed acquisition of Vizio at $11.50 per share in cash aligns with Walmart's strategy to bolster its rapidly expanding US advertising business, which witnessed a 22% surge in ad sales in the quarter ending Jan. 31.

This business segment is proving to be a more lucrative margin driver than its traditional grocery operations.

The acquisition of Vizio also grants Walmart access to the SmartCast operating system, providing opportunities to generate advertising revenue by enabling suppliers to display ads on streaming devices.

Additionally, the deal offers Walmart control over a significant portion of the US television market, constituting approximately one-fifth, according to analysts.

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