What: The Robin Report discusses the reasons why Walmart is buying Vizio and what it gets from the deal.

Why it is important: Innovation is not only about AI. With that deal, Walmart is increasing its presence in the advertising industry through connected TV, and expanding its retail media business potential.

Retailers owning or controlling their key suppliers was common practice in the past, such as Sears Roebuck owning Whirlpool, which made its major appliance. Walmart's acquisition of Vizio, a prime supplier of televisions, is consistent with this old practice. The acquisition is not just for the hardware, but for the software, which allows Walmart to sell advertising space on the TVs and track the effectiveness of those ads. This gives Walmart a stronger foothold in the business of selling ads, subscriptions, and other revenue-generating activities, which are more profitable than selling the TV sets themselves. The acquisition also allows Walmart to compete with Roku, the recognized leader in the connected TV space.

Why is Walmart buying Vizio?