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Walmart may have a better plan to win its fight over cheap smart TVs from Roku and Amazon. People familiar with the matter told The Wall Street Journal that the company is currently eyeing to acquire Vizio for more than $2 billion.

They claim that if Walmart acquired the American consumer electronics company, then it would have a better position in the ongoing cheap TV competition. Here are other details of why the Vizio acquisition plan is a big deal for Walmart.

Walmart Eyes $2 Billion Vizio Acquisition

The Verge reported that if the Vizio acquisition pushes through, it could allow Walmart to better compete against Amazon and Roku, which are among the affordable smart TV providers.

Vizio's cheap smart TVs could help Walmart gain a better position compared to what the retailer's existing Onn house TV brand offers. The planned Vizio acquisition can provide the following benefits to Walmart:

• Subscription fee cuts
• Access to the revenue stream created by offering personalized ads
• Access to the breadth of user data that Vizio's smart TV platform already collected

Right now, Vizio is one of the most popular TV brands that Walmart sells in its stores. However, the acquisition will allow the retailer to add the American TV maker to its empire, giving it an additional advertisement sale source, ShackNews reported.

What Happens If Walmart Acquires Vizio

If Walmart acquires Vizio, the first thing that the retailer will likely do is leverage its ownership of the American TV brand by selling advertisements shown on televisions.

It will not be a surprise since Walmart is already doing it with other TV models it sells inside its stores. Walmart even shows commercials in self-checkout aisles.

If this is the case, experts said the billion-dollar Vizion acquisition will not be about selling affordable televisions. Instead, it will focus on growing advertising revenue. As of press time, Walmart and Vizio have not yet commented on the reported deal.

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WalMart