Walmart intends to acquire Vizio, a manufacturer of smart TVs, as part of a deal worth $2.3 billion.

The mentioned retailer will expand its Walmart Connect media business by implementing the specified business agreement. Vizio’s SmartCast operating system will be combined with the reach and capabilities of one of the largest players in the e-commerce market. The relevant information is contained in the retailer’s press release, which was published on Tuesday, February 20.

The deal is subject to regulatory clearance and other customary closing conditions. After the implementation of the business agreement, Vizio’s Class A common stock will no longer be publicly listed.

Seth Dallaire, executive vice president and director of revenue at Walmart in the United States, says that combining the two businesses would be effective, as the company he represents is currently rethinking the intersection of retail and entertainment.

Since 2018, the number of active Vizio accounts has increased by 400%. This is an unequivocally positive result. There are currently 18 million active Vizio accounts. The company also has an advertising business that shows a growing trend.

The deal will strengthen Walmart’s market position. The company will be able to compete more effectively with Amazon, the e-commerce giant offering the best American delivery service and many other solutions, including in the technology sector and the entertainment area.

Vizio CEO William Wang says that Walmart’s approach is consistent with his company’s mission and vision.