The news: Walmart’s $2.3 billion Vizio acquisition may have only closed last December, but the retailer is already unlocking outsize value from the deal.

Why it matters: Vizio is already paying dividends for Walmart.

• The acquisition helped boost its ad business, which grew 50% YoY in FYQ1—or 27% excluding Vizio.
• Walmart is expanding Vizio’s reach by rolling out its operating system to third-party TV makers and plans to integrate it into its ONN private-label TVs later this year. CFO John David Rainey called out Vizio and streaming as keys that will help Walmart expand its nonendemic ad revenues.
• The company is piloting shoppable TV features that let viewers purchase items as they watch.
• And by year’s end, it will make Vizio a Walmart-exclusive private label, sold only through Walmart and Sam’s Club. Vizio will be among Walmart’s 90 store brands, with more than 20 of them generating at least $1 billion in sales, Bloomberg reported, citing an internal Walmart memo.

Our take: Walmart is squeezing every drop of value from its Vizio deal by fusing hardware, software, data, and retail media into a self-reinforcing flywheel. Making Vizio a Walmart-exclusive private label gives the retailer tighter control over pricing and distribution, while Vizio’s OS and shoppable-TV features unlock new streams of nonendemic ad revenues.

• By combining its in-house ad network with ONN TVs powered by Vizio software, Walmart is positioning itself to own the entire living-room stack—from screen to checkout. The result is a powerful closed-loop media system that can rival Amazon’s Fire TV ecosystem.