By Ovunc Kutlu
ANKARA (AA) - Walmart announced Tuesday it will buy television and sound bar manufacturer Vizio for $11.50 per share in cash, equating to a fully diluted equity value of approximately $2.3 billion.
The world's largest retailer said the acquisition of Vizio and its SmartCast operating system would enable Walmart to connect with and serve customers in new ways that include innovative television and in-home entertainment and media experiences.
The deal is also expected to further accelerate Walmart’s media business in the US by bringing together Vizio's advertising business with Walmart’s reach and capabilities, it added.
"We believe VIZIO’s customer-centric operating system provides great viewing experiences at attractive price points," said Seth Dallaire, executive vice president and chief revenue officer at Walmart U.S. "We also believe it enables a profitable advertising business that is rapidly scaling."
Walmart's stock price was up 5.8% at 10.02 a.m. EDT on the New York Stock Exchange, while Vizio's shares soared 14.7%, after the announcement.