comscore Amazon has made a formal bid to buy a 60 percent stake in Flipkart: Reports
News

Amazon has made a formal bid to buy a 60 percent stake in Flipkart: Reports

After months of speculation that Walmart is the front-runner to buy a controlling stake in Flipkart, Amazon's offer has changed the situation.

  • Updated: May 3, 2018 8:44 AM IST
flipkart

While Walmart was earlier believed to be the front-runner to buy a controlling stake and take over Indian e-commerce player Flipkart, the latest reports might change that idea. According to a report by CNBC TV18, Amazon has made a formal offer to buy a 60% stake in Flipkart at a price which is believed to be similar to Walmart‘s offer – around $12 billion. Also Read - Flipkart starts Dussehra Specials sale: Big deals on Realme C3, iPhone 11 Pro, Poco M2, Redmi 8A and more

Also Read - Oppo F17 Pro Diwali Edition launched in India: Check price, offers, features

It has been suggested that Amazon was looking to make an offer itself in order to prevent the entry of Walmart into the Indian e-commerce market, but this appears to be the first firm report that the American e-commerce major has actually done so. Amazon’s offer includes a break-up fee of about $2 billion, which is to be paid in case the deal does not go through for whatever reasons. This is a protective measure intended to give the sellers confidence when proceeding with a deal, since the buyer has that much more at stake in completing the takeover. Also Read - Amazon Great Indian Festival sale sold more iPhones on day one than last year’s sale

It also appears that Amazon is seeking a non-compete clause with Flipkart’s founders through the deal. Flipkart is currently the biggest competitor to Amazon India in the booming e-commerce space in India, and together, the two companies control over 80 percent of the e-commerce market in the country. However, an Amazon takeover would raise concerns over anti-competitiveness and monopolistic practices in the e-commerce industry, as the combined entity would no longer be concerned with competing against each other and would control almost the entirety of the e-commerce market.

It is believed that the majority of Flipkart’s stakeholders – including Tiger Global (which controls 20% of Flipkart), Naspers (14 percent stake) and the founders Sachin Bansal and Binny Bansal – would prefer to sell to Walmart, primarily because such a deal would face regulatory hurdles.

WATCH: Huawei P20 Pro Review

Softbank, which controls 25 percent of Flipkart, has apprehensions about selling to Walmart and has been encouraging the Amazon offer. Tiger Global, Naspers and other small investors would receive full exits from Flipkart with the Walmart deal, while Softbank would sell a large part of its 25% stake, but continue to hold a small stake in Flipkart even after the sale. Walmart or Amazon would gain a controlling stake in Flipkart post any deal.

For the latest tech news across the world, latest PC and Mobile games, tips & tricks, top-notch gadget reviews of most exciting releases follow BGR India’s Facebook, Twitter, subscribe our YouTube Channel.
  • Published Date: May 3, 2018 8:39 AM IST
  • Updated Date: May 3, 2018 8:44 AM IST



new arrivals in india

OnePlus 8T
OnePlus 8T

42,999

Samsung Galaxy F41
Samsung Galaxy F41

15,499

Apple iPhone 12 Pro Max
Apple iPhone 12 Pro Max

1,29,900

Apple iPhone 12 Pro
Apple iPhone 12 Pro

1,19,900

Apple iPhone 12 Mini
Apple iPhone 12 Mini

69,900

Apple iPhone 12
Apple iPhone 12

79,900

Poco X3
Poco X3

16,999

Realme Narzo 20A
Realme Narzo 20A

8,499

Realme Narzo 20
Realme Narzo 20

10,499

Realme Narzo 20 Pro
Realme Narzo 20 Pro

14,999

Oppo F17
Oppo F17

17,990

Samsung Galaxy M51
Samsung Galaxy M51

24,999

Poco M2
Poco M2

10,999

Oppo F17 Pro
Oppo F17 Pro

22,990

Realme 7 Pro
Realme 7 Pro

19,999

Realme 7
Realme 7

14,999

Xiaomi Redmi 9A
Xiaomi Redmi 9A

6,799

Vivo Y20
Vivo Y20

12,990

Xiaomi Redmi 9
Xiaomi Redmi 9

8,999

Nokia 5.3
Nokia 5.3

13,999

Motorola Moto G9
Motorola Moto G9

11,499

Realme C15
Realme C15

9,999

Realme C12
Realme C12

8,999

Samsung Galaxy Note 20
Samsung Galaxy Note 20

77,999

Xiaomi Redmi 9 Prime
Xiaomi Redmi 9 Prime

9,999

Oppo Reno4 Pro
Oppo Reno4 Pro

34,990

Samsung Galaxy M01 Core
Samsung Galaxy M01 Core

5,499

Realme 6i
Realme 6i

12,999

Asus Rog Phone 3
Asus Rog Phone 3

49,999

OnePlus Nord
OnePlus Nord

24,999

Infinix Smart 4 Plus
Infinix Smart 4 Plus

7,999

Xiaomi Redmi Note 9
Xiaomi Redmi Note 9

11,999

Samsung Galaxy M01s
Samsung Galaxy M01s

9,999

Vivo X50 Pro 5G
Vivo X50 Pro 5G

49,990

Vivo X50 5G
Vivo X50 5G

34,990

Realme C11
Realme C11

7,499

Poco M2 Pro
Poco M2 Pro

13,999

Realme X3
Realme X3

24,999

Realme X3 SuperZoom
Realme X3 SuperZoom

27,999

Tecno Spark Power 2
Tecno Spark Power 2

9,999

Oppo A12
Oppo A12

9,990

Oppo A52
Oppo A52

16,990

Samsung Galaxy A21s
Samsung Galaxy A21s

15,999

Oppo Find X2
Oppo Find X2

64,990

Motorola One Fusion Plus
Motorola One Fusion Plus

17,499

Samsung Galaxy A31
Samsung Galaxy A31

20,999

Samsung Galaxy M01
Samsung Galaxy M01

8,999

Samsung Galaxy M11
Samsung Galaxy M11

10,999

Infinix Hot 9 Pro
Infinix Hot 9 Pro

9,999

LG Velvet
LG Velvet

Price Not Available

Xiaomi Mi Note 10 Lite
Xiaomi Mi Note 10 Lite

Price Not Available

Apple iPhone SE 2020
Apple iPhone SE 2020

42,500

Honor 30 Pro
Honor 30 Pro

Price Not Available

Honor 30
Honor 30

Price Not Available

OnePlus 8
OnePlus 8

44,999

OnePlus 8 Pro
OnePlus 8 Pro

54,999

Xiaomi Redmi Note 9 Pro
Xiaomi Redmi Note 9 Pro

13,999

Motorola Moto E4
Motorola Moto E4

8,999

Samsung Galaxy On Max
Samsung Galaxy On Max

9,775

nubia N2
nubia N2

15,999

Karbonn K9 Kavach 4G
Karbonn K9 Kavach 4G

5,290

Motorola Moto C Plus
Motorola Moto C Plus

6,999

Best Sellers