Walmart has bought a big TV company called VIZIO for $2.3 billion. They announced it yesterday. Now Walmart can use VIZIO’s special software that’s on lots of smart TVs.

VIZIO has become one of the top affordable TV brands in the US partly thanks to its smart TV software and integration of streaming apps. The company’s SmartCast platform is used by over 18 million active accounts across VIZIO’s installed base.

The deal appears to be part of Walmart’s strategy to boost its advertising business and better compete with Amazon and Roku in streaming. Walmart already has an existing brand of affordable smart TVs called Onn. However, acquiring VIZIO gives Walmart immediate scale and an operating system installed on millions of TVs.

According to Walmart, the VIZIO acquisition will “enable Walmart to connect with and serve its customers in new ways including innovative television and in-home entertainment and media experiences.” Walmart also noted the deal would create opportunities for brands to advertise on a larger scale.

VIZIO has over 500 direct advertising partnerships through its VIZIO Platform Plus software for targeted ads. Walmart seems keen to tap into this advertising potential as it looks to grow its own ads business.

The acquisition still needs regulatory approval but highlights the value of software and data in the streaming era. VIZIO founder and CEO William Wang said the deal “will help bring a scaled, connected TV advertising platform to Walmart Connect.”

While Roku pioneered streaming software and advertising in TVs, Walmart is making it clear it wants a piece of that lucrative business as media consumption shifts. For VIZIO, being acquired by the world’s largest retailer could take its smart TV software and data business to a whole new level.