Walmart buys ‘the Google Ads of streaming’ Vibe in a deal tipped at a $1 billion-plus valuation

Financial terms of the deal were not publicly disclosed, although separate sources approached by Digiday, who requested not to be named to maintain relationships, hinted it was in the range of $1 billion.

In a statement announcing the deal, both parties said the transaction is expected to close by the end of fiscal year 2027. After which, Arthur Querou, Vibe’s CEO and co-founder, and Franck Tetzlaff, Vibe’s CTO and fellow co-founder, are expected to join Walmart Connect to aid its integration into the wider entity. 

‘Google Ads of streaming’

Vibe has positioned itself as one of the most high-profile CTV advertising outfits since its $22.5 million Series A funding round, when the company likened itself to “the Google Ads of streaming” in early 2024. 

It was later valued at $410 million following its Series B funding and was also described as “one of the fastest-growing software companies ever,” generating $100 million in annual recurring revenue last year. 

One source who claimed to be familiar with Vibe’s business said this sum has since increased significantly, and suggested the company’s valuation would likely be considerably above the $1 billion mark. 

Walmart declined to comment on the deal’s value, while Vibe representatives did not respond by press time.

Platforms want SME dollars

Through the acquisition, Walmart Connect is targeting the media budgets of businesses outside blue-chip, household-name brands — Vibe purportedly has more than 10,000 SME and mid-market advertisers on its platforms. 

The pitch to market is to combine Vibe’s self-serve campaign activation tools with the retail giant’s commerce data, closed-loop measurement capabilities, and growing media assets to deliver a demonstrable ROAS, i.e., attract more ad dollars to Walmart Connect. 

It also builds on Walmart’s $2 billion-plus purchase of Vizio, a move that Walmart claimed would enhance its retail media offering in 2024. In recent months, Walmart Connect has also integrated with multiple partners, including Magnite, demand-side platforms Google DV 360, and Yahoo, as it seeks to strengthen its position in the fast-growing retail media and CTV sectors.

Such is the buzz around the potential for bringing SME ad dollars to CTV, large household names, including Meta and Pinterest, are also investing in the sector.  

In April, multiple sources told Digiday that Meta was exploring a potential move into CTV, which would have put it in direct competition with Vibe, while Pinterest formally unveiled similar intentions after its reported $350 million purchase of TVScientific.   

Announcing the deal during the week of the Cannes Lions Festival of Creativity builds on the tradition of large-ticket purchases coming to light at the ad industry’s flagship conference, with Charles Ping, managing director at Winterberry Group, earlier telling Digiday that the environment for such deals was palpable.

“This is never more apparent than in Cannes,” he added. “Many others are undergoing preparation for a process, but with timing to be decided later this year, heavily based on global events. Investors still need to allocate capital, so are engaged early in these conversations.”