The Federal Trade Commission (FTC) has kicked off an antitrust inquiry into Walmart Inc.’s proposed acquisition of smart TV company Vizio Inc., which the companies announced in February at a value of $2.3 billion.

Before receiving the FTC’s request for more documents, known as a Second Request, Walmart had withdrawn and refiled its Hart-Scott-Rodino (HSR) notification following informal discussions with the FTC and the Department of Justice Antitrust Division, according to Pymnts.com.

While the companies work toward substantial completion of providing the additional information to the Commission, the parties are expected to press on – not for Walmart to get into the TV-making business – but to gain access to Vizio’s smart TV software platform, SmartCast™, and the marketing opportunities and advertising revenue it generates. Vizio’s platform collects valuable data on user viewing habits, which is attractive for Walmart’s growing advertising business. Walmart says the combination would accelerate its media business in the U.S., called Walmart Connect, the retailer’s answer to Amazon.com.

In addition to watching movies and programs, smart TV consumers can access streaming services and connect with other devices. In 2021, more than 70% of homes had a smart TV. Access to these users can be invaluable to retailers.

Retail and Entertainment

Walmart CFO Seth Dallaire says Vizio’s “customer-centric operating system provides great viewing experiences at attractive price points” and “enables a profitable advertising business that is rapidly scaling.” Walmart Connect is designed to help brands reach the millions of customers who shop at Walmart. The executive adds that the deal would help Walmart “redefine the intersection of retail and entertainment.”

Amazon.com remains the world’s most popular online retail platform, drawing more than 2 billion visitors a month. Walmart enjoys the most-visited website among retailers, with anywhere from 400 to 580 million visits a month, according to various sources. Amazon.com generated $575 billion in 2023; Walmart.com generated $54.4 billion, a 12% increase over 2022, according to Statista.

Vizio is one of the leading smart TV producers, with 12% of the U.S. market in 2020, according to Statista. Samsung remains the most popular brand among U.S. households, with a 28% share. Alcatel/TCL has 13% of the market.