Flipkart-Walmart Deal To be Sealed Tomorrow? Here is the Expected Valuation of the Indian E-comm Company
As part of the deal, co-founder and executive chairman Sachin Bansal will likely exit completely, selling his 5.2 percent stake.
Bengaluru, May 8: It has been buzzing in the news for quite sometime that Flipkart and Walmart are in the final stages of their deal. Reportedly, on Wednesday, Walmart, and Google parent Alphabet Inc will announce that it would buy 70-75 percent of Flipkart for about $20 billion. According to recent reports, Walmart will acquire about a 60 per cent stake in Flipkart, while Alphabet will get a roughly 15 per cent stake in Flipkart.
It is believed that the deal will see Flipkart's valuation rise as much as 70 percent within a year. Infact, the Walmart and Flipkart deal will reportedly, give the world's largest brick-and-mortar retailer, access to an e-commerce market that Morgan Stanley estimated to be worth $200 billion in a decade's time. It is in fact, a smart strategy by Walmart to take on Amazon.
As part of the deal, co-founder and executive chairman Sachin Bansal will likely exit completely, selling his 5.2 percent stake. Walmart India and Flipkart will continue to maintain distinct brands after the deal.
Reports appeared few days back which suggested that Amazon countered Walmart's bid to buy Flipkart. However, as quoted in a Reuters report, one person familiar with the development said that the probability of a deal with Amazon was less, and that any such deal could spark monopoly concerns as Flipkart and Amazon dominate India's e-commerce market. With Walmart entering India, it will be interesting to see, how the Indian e-comm space shapes up in the coming days.
(The above story first appeared on LatestLY on May 08, 2018 04:38 PM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).