Walmart, Alphabet Acquiring Flipkart's Majority Stake To Take On Amazon In India

04 May, 2018, 13:52 | Author: Salvatore Jensen
  • Flipkart yet to finalise stake sale deal with Walmart

Last year, there were rumours and speculations that Flipkart would buy Snapdeal, but the deal officially ended around mid-2017.

CEO Krishnamurthy is expected to continue in his role, but numerous reports have been pointing to the exit of one of the two founders, Sachin Bansal, who is now the executive chairman of the company. Sachin Bansal, 36 and Binny Bansal 35, who became friends as colleagues in Amazon had started Flipkart in 2007.

Meanwhile, the Times of India reported Friday that, when the Walmart (wmt) takeover takes place, Flipkart chairman Sachin Bansal will step down. Both Bansals began operations out of their Bengaluru apartment.

Sachin Bansal served as CEO of the company till 2016. Binny was later elevated to Group CEO. SoftBank invested in Flipkart a year ago through its investment arm SoftBank Vision Fund and held a little over 20% stake in the ecommerce major.

With Walmart hands going deeper into the local ecommerce unicorn, Flipkart has reportedly buyback shares from a set of existing investors for $350 Mn, to reclaim its status of a private company - Flipkart Pte Limited.

Mint reported on 2 May that Walmart, the world's largest retailer, is in final negotiations to buy a majority stake in Flipkart even as a rival combination of Flipkart and Amazon looks increasingly unlikely. "It also places Flipkart's valuation at approximately $ 17.69 Bn", adds the media report.

The regulatory hurdles, however, may put a stop to Amazon's acquisition plans.

The acquisition of Flipkart has been a long-drawn out saga that has kept the Indian e-commerce space on edge, but it seems that a deal has finally been finalized. So Flipkart's investors will likely think twice about any such offer. However, Amazon's interference with the Walmart-Flipkart deal, which was close to being sealed according to insiders, does show the importance of gaining ground in India, a market expected to be worth 200 billion dollar (170 billion euros) a year within a decade.

Walmart's bid for Flipkart, which is also its biggest e-commerce bet anywhere globally, is likely to boost its online expansion in Asian markets. The buy-back brought about a clean exit of a significant portion of Flipkart's shareholders. The buzz is that the American company could bag four of the 10 seats on the board but the top management is not expected to change.



Tesla Model 3 Deliveries Level Out - Production Woes Continue
Even if Tesla isn't willing to offer easier and more flexible ways to get one, other vehicle companies surely will. The short answer is that, from a technical standpoint, Tesla will be ready by the end of next year, Musk said.

Gas Prices in Lincoln are Up
The latest from numbers from GasBuddy show that gasoline in Honolulu have gone up more than 3-cents per gallon in the past week. The most expensive gas price averages in Georgia were in Atlanta at $2.76 per gallon, Brunswick at $2.75 and Athens at $2.75.

Maxine Waters on Kanye West: He sometimes 'talks out of turn'
In the end, Kanye ends the debate with the equivalent of a shrug: "Why don't we just cut the beat off and let the people talk". You know, like, people, we're taught how think, we're taught how to feel.

Nikol Pashinyan officially nominated for Armenian PM
Pashinyan is still six votes short of the 53 he needs from the 105-seat legislature. Pashinyan earlier met with members of his Elk faction.

Kate Middleton's job confirmed on Prince Louis' birth certificate
Former One Direction star Louis Tomlinson - a noted devotee of the Adidas brand - tweeted: "Young Louis welcome to the world". Mountbatten was assassinated by members of the Provisional Irish Republican Army (IRI) during a trip to Ireland in 1979.

Facebook Hate Speech Feature Was Released Accidentally
Last week, it published its previously secret guidelines for censors for the first time. My entire timeline was full of posts skewering the latest Facebook feature.

São Paulo building collapses in huge blaze
Globo TV reported some 150 people lived in the building, but most were not inside at the time of the fire and subsequent collapse. Poor families often squat in disused buildings or set up tents and shacks on vacant land, sometimes next to wealthy areas.

Amazon expands Alexa hub in Boston with 2000 new jobs
The new roles will include e-commerce technology, cloud computing, and machine learning. The expansion would more than double the current number of workers it has in Boston.

Adelaide loses global cricket on Australia Day
However, this year, they are awaiting confirmation from India about whether they will ply under floodlights or not. Adelaide has hosted D/N Tests in the last three years against New Zealand , South Africa, Pakistan and England.

Ashley Judd files lawsuit against Harvey Weinstein
In October, Judd sat down with ABC News' Diane Sawyer in her first television interview about her Weinstein allegations. Ashley Judd has sued disgraced mogul Harvey Weinstein for what the actress says was irreparable damage to her career.