Flipkart sale: Amazon.com offers to buy 60 percent stake, even as WalMart offer simmers
Flipkart sale: 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. Amazon also offered Flipkart a breakup fee of $2 billion, the TV channel reported.
Flipkart stake sale: Global e-tailer Amazon.com has made a formal offer to buy 60 per cent stake in India's e-commerce giant Flipkart, said a CNBC-TV18 report today, Citing sources, the report said that Amazon's offer is likely to be at par with Walmart's bid for Flipkart. Amazon has reportedly also sought a non-compete agreement with Flipkart's founders. According to the report, Amazon bid offers a breakup fee of $2 billion, while Walmart offer includes the buyout of over 80 per cent stake. Jeff Bezos-led firm reportedly stated that it does not offer comments on rumours and speculations.
The US retail giant, Walmart, which proposed to retain Flipkart's current structure, is expected to gain three to four seats on Flipkart's ten-member board. Walmart has reportedly said it will retain the management team of Flipkart, including CEO Kalyan Krishnamurthy
The $12 billion deal, between Walmart and Flipkart, recently got global attention in the wake of Softbank approaching Walmart's global CEO, said CNBC-TV18 report, adding that investors and founders of Flipkart are in favour of the deal with Walmart.
Flipkart's founder Sachin Bansal was reportdly in the US last week to oversee final lap negotiations with Walmart, and the latter's global team is expected to come to India soon to finalise the mega deal.
Watch this Zee Business video here:
A Reuters report said that the deal with Flipkart would step up the Walmart-Amazon battle for a bigger share of India`s fledgling e-commerce market, which Morgan Stanley estimates will be worth $200 billion in a decade.