Amazon's Flipkart bid just not high enough

by Ben Pena May 3, 2018, 9:25
Amazon's Flipkart bid just not high enough

Ahead of the buyout of controlling stakes by global retail giant Walmart, Flipkart is reportedly preparing to buy back shares from small investors as it seeks to regain its private limited company status in Singapore. Thomson Reuters Amazon.com Inc has made a formal offer to buy a 60 percent stake in Indian online retailer Flipkart, CNBC-TV18 reported on Wednesday, citing sources.

It is interesting to see how all this pans out and if Flipkart considers the offer from Amazon, or accepts Walmart's offer to take on Amazon head-on in what is now a fiercely fought battle in the Indian e-commerce arena. The offer could complicate matters for Walmart, which has also been trying to buy a majority stake in the company.

Amazon is also seeking a non-compete agreement with Flipkart's founders. The Walmart global team may come to India soon to close the deal, the report added. Amazon is circling Flipkart, according to media reports. Rival Amazon is making a last ditch effort to avert a formidable combine of its competitors.

Amazon's offer could kickstart a new battle between it and Walmart, already fierce retail rivals in the United States that have reportedly dueled over at least one acquisition before.

Flipkart was last valued at about $12.5 billion when it raised $2.5 billion from Masayoshi Son's SoftBank Vision Fund in August 2017. Softbank, Flipkart's main stakeholder, however, had some apprehensions over a deal with Amazon. The final negotiations on the stake and the valuation are on and the deal is expected to be closed by June. Chasing a business started by two former employees suggests the $760 billion e-commerce giant is anxious by the idea of its main local rival joining forces with Walmart. As for why both USA retail giants want a piece of Flipkart, India's e-commerce market is expected to be worth $200 billion annually in the next 10 years.

Ronald Acuna, Ozzie Albies go deep as youthful Braves beat Reds
The Braves rallied with single runs in the eighth and ninth off Reds reliever Kevin Shackelford to win 5-4. Cesar Hernandez, Maikel Franco and Drew Hutchison each contributed base hits of their own in the defeat.

Walmart is expected to gain three to four seats on Flipkart's ten-member board.

SoftBank is also likely to go along with the other investors, the sources told ET.

People in the know said that Flipkart has that kept its options open for the initial public offer (IPO) in the future.

In an interview with TOI just a few days ago, Son said, "We are involved in discussions with key shareholders and the management".

Recommended News


TOP News

Facebook Messenger Kids App Gets Sleep Mode Parental Control
Setting up the account for each child will give parents the option of setting limits to what videos can be displayed and played. There are also plenty of reasons to be wary of apps like Messenger Kids and YouTube Kids .

Nearly 100 sick as romaine lettuce-linked E. coli outbreak continues
The CDC says people should not be eating or buying romaine lettuce unless they know for a fact that it is not from Yuma, AZ. This E. coli outbreak is now the largest since 2006, when more than 200 people fell ill after eating contaminated spinach.

'Spongebob Squarepants,' 'Mean Girls,' 'Angels in America' Lead Tony Award Nominations
The more than five-hour, two-part saga earned raves on Broadway after winning record Olivier awards in London past year . GREEN I think we are approaching a moment when puppetry, magic and special animal effects will have to get a category.

Getting along with Russian Federation not bad thing: says Trump
Yep, the 243-page report cleared President Trump of any collusion with the Russians in the 2016 Presidential Race. The Intelligence Committee is chaired by Republican Rep.

Scientists in shock as NASA junks first-ever robotic mission to Moon
Known as the Resource Prospector (RP), this robotic rover was under development for over a decade, notes a report by PhysOrg. Materials could also hold important clues about the moon and space, said the scientists.

James Comey faces questions at CNN town hall
The Trump White House continues to do an wonderful job helping writers sell books that slam the Trump White House. James Comey's new tell-all book, A Higher Loyalty: Truth, Lies, and Leadership , has had quite a good week.

Trump lawyer: any Mueller-Trump interview to be limited
The New York Times said the questions were read by the investigators to the President's lawyers, who compiled them into a list. The Washington Post reports Mueller brought up the option in a "testy" meeting with Trump's lawyers back in March.

Trump blasts 'leak' of list of Mueller questions to president
Mr Mueller was appointed as special counsel following Mr Trump's firing of Mr Comey last May. You can read the full list of the questions Mueller wants to ask Trump here.

Deadliest day for Afghan journalists, 10 killed
The second explosion was meant to hit those scrambling to get to the scene to help the victims of the first blast, he added. The dead include news agency AFP's chief photographer in Afghanistan, Shah Marai , as well as several other journalists.

Facebook gets into the online dating business
To get to the dating feature , you'll simply tap the heart icon in the top right corner of your Facebook profile. While the firestorm over the data privacy scandal has subsided for the most part, Facebook, Inc.