Retail giant Walmart is looking to follow Amazon in the market for internet television advertising by buying smart TV maker Vizio, the Wall Street Journal reported. Vizio stock surged on the news, while rival Roku fell.
The Journal late Tuesday said Walmart is in talks to buy Vizio in a deal worth more than $2 billion. The acquisition would give Walmart a new online platform to sell advertising and pitch products to consumers.
Vizio already has a close relationship with Walmart as the biggest TV brand sold in its stores.
The streaming video market has become a battleground as companies look to control the home screens that consumers see when they turn on their TVs. Competition in the smart TV platform market has intensified as consumers have moved away from traditional pay-TV services.
Vizio Stock Soars, Roku Stock Drops
On the stock market today, Vizio stock jumped 24.7% to close at 9.75. Roku stock tumbled 8.8% to close at 89.94. Walmart stock dipped 0.7% to close 169.14.
Roku has 25% share of the connected TV market, based on smart TV operating systems in use, according to Parks Associates. Amazon makes up 17% of the market with its Fire TV operating system. Vizio's operating system controls 8% of the market.
On Jan. 29, Amazon started serving ads to all of its Amazon Prime TV subscribers. Customers who want an ad-free TV experience now have to pay $3 more a month.
Follow Patrick Seitz on X, formerly Twitter, at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
