Shares of connected-TV platform company (NASDAQ: ROKU) were trending down along with the S 500 until about 3 p.m. ET when Roku stock suddenly sank. This market move coincides with a report from The Wall Street Journal that says that retail giant Walmart (NYSE: WMT) wants to buy smart TV maker Vizio (NYSE: VZIO).

As of 3:40 p.m. ET, Roku stock was down 10%. For its part, Vizio stock was up 27%, whereas Walmart stock was relatively unchanged.

Vizio's business is quite similar to Roku's -- they both generate revenue from selling devices, but they also offer an operating system for smart TVs. The operating system business can generate revenue by displaying ads. And it's this ads business that Walmart is reportedly more interested in.

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Source Fool.com