Walmart Is Rumored To Be Closing In On Flipkart Deal

Walmart Is Rumored To Be Closing In On Flipkart Deal

Established in 2007, India’s Flipkart has seen massive growth over an almost 11-year period as the country’s answer to Amazon and eBay (which it has a subsidiary). The company features everything from online shopping to music. Now Walmart looks primed to purchase a majority stake in Flipkart this summer, according to Reuters.

Last week Reuters reported that Walmart made a proposal to purchase 51-percent of the company—or more. The deal would come in between $10 billion and $12 billion. That price is simply for existing shares. With new shares included it would move towards $18 billion.

The acquisition would be huge for Walmart who has been on the losing of going head to head with Amazon in India. The Seattle-based competitor is said to be looking at an offer for Flipkart as well. Currently running 40-percent of India’s online market, a deal with Flipkart would increase that to over 70-percent says Forrester Research.

The move is an interesting one given as Walmart is embracing online shopping more as brick and mortar shops have been taking hits while Amazon begins building physical stores. Other investors in Flipkart are expected to sell their shares in the company if the deal goes through. The only holdout is likely to be Softbank—who holds 20-percent. It’s unknown what investors such as eBay and Microsoft will do.

At the moment, Walmart has a small foothold in India with just 21 stores.

Starting with Kabir News in 2013, James has focused on tech, gaming, and entertainment. When not writing, he enjoys catching up on sci-fi and horror shows and comics. He can be followed on Twitter @MetalSwift.

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