Walmart will buy a $1.4 billion television company, including programming, technology and operations, as it seeks to make its TV channel the world champion it has been for more than a decade.
The deal is expected to close this week and is expected by analysts to close within months.
It’s the first deal of its kind to be finalized by a publicly traded company, and it is expected that Wal-Mart will use the $1 Billion buy to build up its video content operations in the U.S. and overseas.
The company will also use the acquisition to grow its video operations in other markets.
For example, it is looking to acquire other channels such as HBO in order to expand its reach in Asia and Latin America.
“The acquisition will allow Wal-Marts global footprint to expand, both in terms of content and services, while also adding value to our existing content portfolio,” said Wal-Man founder and CEO Craig McMillon in a statement.
The acquisition is expected add $1bn to Wal-mart’s total $40.5 billion in revenue this year, which is expected be the most for any U.P. company in a year.
Walmart, which started streaming video in 2008, said the deal is aimed at “providing the highest quality, highest quality entertainment, which includes premium content and our most popular brands,” such as Coke, Pepsi, McDonalds and Wendy’s.
Wal-Mart is in a battle with cable networks NBCUniversal, which owns the cable channels Univision and Telemundo, and Dish Network, which has the satellite channels Dish and DirecTV.
The cable networks have a large presence in U.A.E., where Wal-marts largest store is located.
The Wal-Men are known for their deep pockets and aggressive acquisitions.
They have bought the cable networks Sling TV and Dish TV, which in turn acquired the digital channels YouTube, Vine and Instagram.
WalMart also owns a large stake in Netflix, which began streaming in 2011.