Wal-Mart has officially acquired Vizio for $23 billion, and the retail giant will leverage its SmartCast OS to enhance its advertising arm, Wal-Mart Connect

The news came in a press release issued Tuesday morning by Walmart itself, which said that Vizio's SmartCast "has been responsible for the majority of the company's growth over the past five years"

Walmart's $23 billion acquisition comes on the heels of several reports last week claiming the deal's high potential, which would see Walmart challenge major rivals like Amazon's Fire TV and Roku However, the deal appears to be more focused on pushing Walmart Connect into much more attractive territory than on bolstering Vizio's TV manufacturing potential

Walmart is looking to use its newly acquired $23 billion acquisition of Vizio to better leverage its Connect advertising business, which is estimated to have earned just under $3 billion in 2022, according to Insider Intelligence

Through Vizio's SmartCast OS, a platform that Wal-Mart claims in a press release to have over 18 million users, the retail giant will be able to sell shoppable ads to far more eyes around the world

In its release, Walmart writes that SmartCast will also "create opportunities for advertisers to connect with customers and empower brands with differentiated and engaging opportunities," presumably referring to more sophisticated and interactive shoppable advertising

In 2022, Wal-Mart will join forces with Roku to deliver shoppable ads that will allow users to purchase products Wal-Mart carries directly from television The retail giant did not mention Roku in its release, even though the deal may still be in place Wal-Mart is also partnering with Innovid for similar personalized TV-based advertising in 2023

The deal with Vizio is finalized on the TV manufacturer's side, but is still subject to general regulatory approval; Vizio also has a 45-day window to pull out of the deal due to a possible "better offer" that could be presented through an alternative source

Vizio has made its SmartCast OS a place of continuous innovation, updating its speed and home screen redesign last year The TV maker could also leverage $23 billion in capital for innovative TVs, which Wal-Mart mentions at the beginning of its press release, even though advertising is its primary means of investment

Walmart Connect has evolved significantly over the past few years, and the retail giant claims to see 30% growth in fiscal year 2024 The company could reap huge benefits by making Vizio the new advertising home for its growing business

Wal-Mart also has its own TV business on and could see further growth through the production of Vizio Through its $23 billion acquisition of Visio, the retail giant will take on major rivals in the cheap TV space, including both Roku and Amazon's Fire TV