Fandango is buying Vudu's video service from Walmart

The streaming platform will complement FandangoNow after the deal closes.

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Fandango has agreed to buy Vudu from Walmart for an undisclosed sum. Although Fandango has its own streaming platform, FandangoNow, it's not planning to shut down Vudu and roll it into that service. The Vudu app will remain available, and you'll still have access to the movies and TV shows you own there. You can still use your Walmart credentials to login and make purchases on Vudu with your Walmart wallet.

Vudu will continue to provide the backbone for Walmart's own digital movie and TV store (which also offers some ad-supported freebies) as part of the deal, according to TechCrunch. Walmart expects the acquisition to close in the coming months.

Fandango isn't exactly selling many movie tickets right now, as almost all theaters (save for some drive-ins) are closed to prevent the spread of COVID-19. Streaming, on the other hand, is booming, so adding Vudu to the portfolio might help Fandango's bottom line in the long run. Comcast, which is the majority owner of Fandango, is in the midst of launching another streaming service: NBCUniversal's Peacock.

Rumors have been floating around for several months that Walmart was seeking a buyer for Vudu. NBCUniversal emerged as a potential suitor back in February.