Walmart announced its acquisition of French advertising-technology firm Vibe.co for $1.4 billion, marking the retailer's largest deal in two years. The purchase reflects Walmart's aggressive push into connected-TV advertising as it competes with Amazon for digital revenue streams beyond traditional retail.

Vibe.co's platform specializes in serving small and medium-size advertisers who typically lack access to major ad-buying teams. This builds on Walmart's 2022 purchase of TV manufacturer Vizio, which expanded ad inventory across streaming platforms. The retailer aims to help more businesses launch connected-TV campaigns while improving measurement capabilities.

The deal includes a $1.2 billion cash payment to Vibe.co plus approximately $180 million in executive retention payouts. CEO Arthur Querou and CTO Franck Tetzlaff will join Walmart's advertising unit for at least four years. Other staff members will transition to support ongoing operations and advertiser relationships.

This acquisition positions Walmart to capture a larger share of the growing connected-TV advertising market, where budget-conscious advertisers represent an underserved segment. The move directly challenges Amazon's advertising dominance while leveraging Walmart's existing retail data and customer insights.