Amazon And WalMart Wants to Buy Flipkart
Amazon And WalMart Wants to Buy Flipkart: Amazon is keen on purchasing Flipkart, its most outstanding opponent in India. Amazon, whose CEO Jeff Bezos is world’s wealthiest man, has evidently held exploratory converses with purchase Flipkart. In any case, Flipkart doesn’t appear to keen on the offer. The Indian internet business webpage wants to get into an organization with Walmart that may see the US retail mammoth gaining greater part stake in Flipkart.
Founded by former Amazon employees Sachin Bansal and Binny Bansal in 2007, Flipkart has nearly 40 per cent share in India’s online retail, ahead of Amazon.
The Mint, a business newspaper, reports that Amazon may spend as much as $20 billion to acquire Flipkart. But then Walmart is reportedly in talks with Flipkart to buy 55 per cent of its shares, hoping to get into the e-commerce space in India, one of the world’s most populous markets. The move will ensure that Walmart doesn’t lose to Amazon in India the way it lost to it in the US.
The report notes that Walmart will buy a majority stake through a mix of primary and secondary share purchases in a deal that could value Flipkart at $21 billion. Flipkart investors are also planning to sell all of their shares in the Flipkart-Walmart deal.
People working close to the matter have said that the deal with Walmart has higher chances to go through. However, the Mint in February had reported that the SoftBank group, which is the largest investor in Flipkart, is against the deal. As per the report, SoftBank sees itself as a long-term investor in the company and therefore does not want to shell out money for this so early.
The Walmart-Flipkart deal may also help Flipkart stand up against its biggest rival Amazon that plans to invest $5 million in India to expand services here.
Flipkart, according to the report, has raised $6 billion so far. The company, last year in August raised $2.5 billion from Japanese conglomerate Softbank Vision Fund making Softbank the largest investor in Flipkart.
Google Wants Flipkart Too
Not just Softbank, Walmart and Amazon, Google has also expressed its interest to invest in Flipkart. A FactorDaily report claims that talks are in the exploratory stage for this deal. The deal, if it goes through, will value Flipkart somewhere around $10 to $15 billion.
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