San Francisco, Feb 20 : Retail giant Walmart on Tuesday said it is acquiring US-based TV maker Vizio in a deal valued at nearly $2.3 billion, in a bid to boost its ad business.

The acquisition of Vizio and its SmartCast Operating System (OS) would enable Walmart to serve its customers in new ways, including innovative television and in-home entertainment and media experiences.

Vizio has more than 500 direct advertiser partnerships which 'now accounts for a majority of the company's gross profit.'

Vizio's smart TV OS called SmartCast is also used by more than 18 million active accounts.

'We believe Vizio's customer-centric operating system provides great viewing experiences at attractive price points. We also believe it enables a profitable advertising business that is rapidly scaling,' said Seth Dallaire, executive vice president and chief revenue officer, Walmart US.

The combination would be expected to further accelerate Walmart's media business in the US, called 'Walmart Connect', bringing together Vizio's advertising solutions business with Walmart's reach and capabilities.

'By bringing our capabilities and resources together, we'll drive innovation and create even more value for our customers,' said William Wang, CEO of Vizio.

'Walmart Connect', the retailer's closed-loop omnichannel media business, grew 30 per cent for fiscal year 2024.

The transaction is subject to regulatory clearance and other closing conditions specified in the merger agreement, said Walmart.

With fiscal year 2024 revenue of $648 billion, Walmart employs approximately 2.1 million associates worldwide.

/IANS