EBay to relaunch in India after selling $1.1 billion stake in Flipkart

Walmart Wins Flipkart Tug-Of-War With Amazon Via $16 Billion Deal

The buyer was United States bricks and mortar retailer Walmart, which on Wednesday announced that it had acquired 77% of Indian e-commerce firm Flipkart for $16 billion, valuing the e-commerce player at over $20 billion.

Japans SoftBank Group Corp sold its 20 per cent stake, which it had acquired for Dollars 2.5 billion, for about USD 4 billion. It has repeatedly stumbled in its e-commerce efforts in the United States, even as Amazon has become a juggernaut responsible for almost half of that country's online sales. While Flipkart's buyout marks the biggest victory ever for an Indian Internet start-up, it also means that for the foreseeable future, the online retail business in India will be controlled firmly by two large American companies-Walmart and Amazon. This is the largest e-commerce deal anywhere in the world.

The deal is subject to regulatory approvals including Competition Commission of India, and is expected to close later this year.

While Amazon has missed out on an opportunity to buy out Flipkart, it will be business as usual for the world's largest online retailer. Although India's population is rapidly coming online, the number of people with enough income to shop online is still tiny. Therefore, an ironic outcome of this deal is that Indian consumers are going to be subsidised by Walmart's American shareholders even as the U.S. government challenges India at WTO over its subsidies to farmers and exporters.

During a recent investor call, Amazon CFO Brian Olsavsky had said the company would continue to invest in India as it sees?great progress? with both sellers and customers here, even though as the USA e-tailing giant had registered a loss of United States dollars 622 million from worldwide operations in the first quarter of 2018.

Walmart plans to link consumers through its partnership with kirana stores. It could potentially use those Best Price stores as pickup and delivery points. Amazon needs to succeed in another high-growth market to prove it can effectively replicate its model beyond North America, and it has been aggressively expanding in India.

LSU, Cincinnati reportedly get permission to contact Joe Burrow
OR has proven to be a better head coach at LSU than he was at Ole Miss, but he could easily revert to his impatient ways of old. Nearly immediately, schools such as LSU and Florida, among others, were attached to the graduate transfer quarterback.

Importantly, according to media reports, he has already met Amazon's Jeff Bezos, Walmart and Alibaba to discuss various business opportunities with them.

"India is one of the most exciting markets in the world", says Bob van Dijk, Naspers group CEO.

Steuart Walton, the grandson of Walmart founder Sam Walton, is likely to join the board of Flipkart, said a person familiar with the development.

Any comment from Walmart regarding the Flipkart deal was declined.

Sachin and Binny Bansal started Flipkart in 2007 with Rs 4 lakh, going door-to-door to deliver books, they had no intention to sell their company irrespective of the valuation.

"eBay has notified Flipkart and Walmart that it intends to sell its holdings in Flipkart, which will represent gross proceeds of approximately $1.1 billion", the eBay statement said.

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