Walmart Signs Deal to Sell Streaming Video Service Vudu to Fandango

Walmart said it's prioritizing its core business of omni-channel retail.
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Walmart is offloading its video streaming service, Vudu.

The retail giant is selling Vudu, which offers on-demand rentals and streaming of TV shows and movies, to movie ticketing service Fandango. 

Walmart  (WMT) - Get Report confirmed the sale to TheStreet, describing it as part of a broader effort to prioritize the company's core strength of omni-channel retail. 

"We will continue to invest in areas where we have the greatest strength and are in the best position to serve our customers today and in the future," said a Walmart spokesperson. "Pickup and delivery are great examples of how we’ve invested to bring digital and physical capabilities together to better serve our customers, by offering more choice and convenience."

Shares of Walmart fell 0.2% on Monday to $131.84.

As part of the deal, Vudu customers will have uninterrupted access to their TV and movie libraries and can continue to use their Walmart logins. Vudu's technology will also continue to power Walmart's own online digital TV and movie store, Walmart said. 

Rumors of a Vudu sale were circulating for some time prior to Monday's acquisition, with Comcast  (CMCSA) - Get Report named late last year as a possible buyer for the video service. 

Fandango, which sells movie tickets through its website and mobile app, is a unit of Comcast's NBCUniversal, which holds a majority interest in the company. AT&T  (T) - Get Report also holds a minority stake in Fandango. 

The Vudu mobile app has been installed over 14.5 million times, and the service is available on more than 100 million living room devices in the U.S.