Business

Walmart Is Buying Majority Stake In Flipkart, Softbank CEO Confirms

SHAHNAWAZ | 0
3723
| May 9 , 2018 , 16:25 IST

SoftBank CEO Masayoshi Son on Tuesday confirmed reports of Walmart buying a majority stake in the Indian e-commerce giant Flipkart. While the deal was being speculated for a long time, reports suggested that Amazon too was trying to woo Flipkart.

The statement from Masayoshi Son whose company Softbank owns 20% stakes in Flipkart puts all the speculations to end. Softbank’s 20% stake stands at 2.5 billion dollars as of now and will rise to 4 billion dollars once Walmart acquisition takes place. Flipkart’s market valuation is expected to reach 20 billion dollars.

As per reports, the Walmart deal is worth 15 billion dollars and could see the light by the end of the day. Walmart President cum CEO Douglas McMillon along with his top team are already in India for the same. Reports suggest that an employee town hall will take place at the Flipkart campus in Bengaluru for which preparations were in full swing early Wednesday.

Also Read: Nestle Will Pay $7.15 Billion To Starbucks For Global Coffee Alliance

Flipkart was founded by Sachin Bansal and Binny Bansal, both former Amazon employees in 2007. Flipkart initially sold books but slowly ventured into other products as well. The company is India’s biggest online retailer. Flipkart was successful in thwarting competition from its rivals like Myntra and Jabong by acquiring them. It also attempted to acquire Snapdeal. The deal with Snapdeal was called off at the last moment.