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Walmart Buys Majority Stake in Flipkart for $16 Billion Walmart will buy a 77% stake in Flipkart for nearly $16 billion, making it the largest e-commerce acquisition till date

@otuslive

WALMART INC. has agreed to buy a 77% stake in India’s largest e-commerce marketplace Flipkart for nearly $16 billion, valuing the company at about $21 billion and making it the largest e-commerce acquisition till date.

While Walmart and Flipkart will leverage the combined strengths of both companies, they will maintain distinct brands and operating structures, the statement said.

The formal announcement of the deal follows a premature breaking of the news by Masayoshi Son, the CEO of SoftBank in which he said “Walmart is purchasing Flipkart. Last night there was the official announcement.”

Seconds later, Son was handed a slip and then he said: “Yabai desune!” Roughly translated into English, it means “Oops!” or “That’s not good!”

The drama though did not take away from the magnitude of the deal in which Walmart made its biggest acquisition and Flipkart got the heft it needed to fight Amazon in India’s deep-pocket, high-burn and largely a 2-player e-commerce battleground.

“India is one of the most attractive retail markets in the world, given its size and growth rate, and our investment is an opportunity to partner with the company that is leading transformation of eCommerce in the market,” said Doug McMillon, Walmart’s president and chief executive officer.

Launched in 2007 by Sachin Bansal and Binny Bansal selling books online, Flipkart kicked off India’s move to the ecommerce world and by March this year, had recorded a Gross Merchandise Value or GMV of $7.5 billion.

“This investment is of immense importance for India and will help fuel our ambition to deepen our connection with buyers and sellers and to create the next wave of retail in India,” said Binny Bansal, Flipkart’s co-founder and group chief executive officer.

#Flipkart: WHAT THEY SAID

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-ENDS-

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