Walmart, the retail giant known for its relentless pursuit of growth, has set its sights on a new frontier: the smart TV market. According to a report from The Wall Street Journal, the company is in talks to acquire Vizio, a leading manufacturer of affordable smart televisions, for a staggering $2 billion.

It could be a game-changer for Walmart. It would catapult the retailer into a more formidable position to compete with established players in the smart TV arena, such as Roku and Amazon‘s Fire TV.

Walmart’s current in-house brand, Onn, has struggled to gain significant traction in the highly competitive smart TV market. By acquiring Vizio, Walmart would not only gain access to a well-established brand but also a wealth of consumer data generated by Vizio’s smart TV platform. This data, which includes user viewing habits and preferences, could prove invaluable in tailoring personalized advertising and subscription services to consumers.

The acquisition would also provide Walmart with a lucrative revenue stream. Vizio, like many smart TV manufacturers, generates substantial income by serving targeted advertisements on its platform and taking a cut of subscription fees from popular streaming services. With millions of Vizio televisions in homes worldwide, this revenue could be a significant boon for Walmart’s bottom line.

The potential deal comes as Roku and Amazon ramp up their respective efforts in the smart TV space. Roku, which previously focused on licensing its operating system to other TV manufacturers, launched its own line of smart TVs last year. The company has also announced plans to release more expensive Mini LED TVs this spring, further expanding its reach in the market.

Meanwhile, Amazon has been steadily building out its lineup of Fire TVs, while also expanding its advertising efforts within the Fire TV operating system. By acquiring Vizio, Walmart could gain a crucial advantage over these competitors, leveraging Vizio’s established brand and customer base to drive growth in the smart TV sector.

The potential acquisition also presents opportunities for Walmart to extend its advertising reach beyond the traditional retail environment. As noted by The Wall Street Journal, Walmart could leverage its ownership of Vizio to display advertisements on televisions in its stores. The company is already experimenting with this concept, showing ads on TV brands displayed within its stores and even in self-checkout aisles.