In a major development surrounding India's biggest e-commerce deal in history, Softbank CEO Masayoshi Son has confirmed to Bloomberg that the world's largest retailer Walmart has formally agreed to buy a controlling stake in India's Flipkart.
Walmart-Flipkart deal: In a major development surrounding India’s biggest e-commerce deal in history, Softbank CEO Masayoshi Son has confirmed to Bloomberg that the world’s largest retailer Walmart has formally agreed to buy a controlling stake in India’s Flipkart. Further, CEO Masayoshi Son said that Softbank’s $2.5 billion Flipkart stake is now worth around $4 billion in the deal, nearly doubling its investment in a matter of six months. The Japanese major had invested $2.5 billion through Vision Fund. Masayoshi Son did not mention other terms of the Walmart takeover in the briefing on Wednesday, Bloomberg reported.
According to the currently available details, Walmart will look to own a roughly 60 percent stake, while Google’s parent Alphabet will get about 15 percent ownership of the online marketplace, in a deal valued at $15 billion. An ET Now report had earlier said Walmart looks to pick up 71.06% stake in the company at $15 billion, which will prop up Flipkart’s value to over $20 billion. The deal — expected to be among Walmart’s biggest ever in at least two decades, gives it greater access to an Indian e-commerce market, which is slated to grow to to $200 billion in the next ten years, according to Morgan Stanley.