Amazon is not taking control of Flipkart as today, Softbank’s CEO confirmed the acquisition of Flipkart by Walmart. Yes, Walmart has officially acquired Indian’s biggest Electronics e-Commerce giant, Flipkart. During SoftBank’s earnings presentation, the CEO Masayoshi Son spoken up a little bit about the acquisition of Flipkart.
The CEO has announced that Walmart reached to Flipkart on Tuesday to buy it. Softbank is currently Flipkart’s biggest investors and according to reports, the company is acquiring majority of the stakes to take full control of the company.
During the presentation, Masayoshi Son said that, “Walmart is purchasing Flipkart”, “Last night there was the official announcement.” After slipping out the note, during the Q&A section, Son has added that the an official announcement had not yet been confirmed.
The deal reportedly worth around $15 billion. The official announcement is expected to be revealed on Wednesday. During the announcement, Walmart CEO Doug McMillon will also be present at the Flipkart’s headquarter in Bangalore.
According to reports, Walmart is expected to acquire 70% stakes of Flipkart. According to market’s analysts, this would be the biggest e-commerce acquisition which is made against the rival Amazon. Previously, Amazon was in talks with Flipkart for the same acquisition, however it didn’t happen.
Amazon has becoming more popular day by day and it is expanding it wings in Indian market. Fortunately, the number of users of Amazon is quite impressive which is giving tough competition to India’s other e-retailer, Flipkart. Amazon was launched in India in the year 2013.
We have been hearing a lot about the acquisition of Flipkart by Walmart. Both the giants have denied on commenting on the same, however today, the CEO himself has confirmed the acquisition of Flipkart during the earning call.
According to multiple Media reports, Flipkart was agreed to sell out 70% of its stake to the Walmart group. Surprisingly, the deal is already settled down and we will be hearing the official announcement of it very soon.
“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 in a statement .
Flipkart was founded in the year 2007 by Amazon’s former employee Sachin Bansal and Binny Bansal. It was first started as an online book store. Flipkart is now India’s biggest e-commerce mostly selling Electronic gadgets such as Smartphones, Televisions, Cameras, Home Appliances and all the other items.
In a nutshell, Walmart-Flipkart deal is expected to boost the e-commerce sector and we would have a whole new surrounding to explore the best of items.