Join gaming leaders, alongside GamesBeat and Facebook Gaming, for their 2nd Annual GamesBeat & Facebook Gaming Summit | GamesBeat: Into the Metaverse 2 this upcoming January 25-27, 2022. Learn more about the event. 


(Reuters) — U.S. retail giant Walmart is acquiring Indian e-commerce player Flipkart, the chief executive of one of Flipkart’s biggest shareholders, SoftBank Group, said on Wednesday.

Walmart would invest $10 billion-$12 billion in Flipkart for a controlling stake of more than 51 percent at a valuation of about $20 billion in what is the U.S. retailer’s biggest acquisition of a business, Reuters has reported earlier.

“Last night, Japan time, it (Flipkart) reached final agreement that Walmart is purchasing Flipkart,” Masayoshi Son said on a SoftBank earnings conference call, ahead of an expected announcement by Walmart-Flipkart later on Wednesday.

Buying a stake in Flipkart, which sells everything from soaps to smartphones and from books to clothes, gives Walmart access to the vast Indian e-commerce market that, according to Morgan Stanley, will potentially be worth an annual $200 billion in a decade.

Last week, Indian media reported Amazon.com, Flipkart’s biggest rival in India, had made a formal offer to buy 60 percent of Flipkart and that it had also proposed a $2 billion breakup fee to convince Flipkart to discuss its offer.

Sources told Reuters that Amazon had shown an interest in buying Flipkart, but said a deal with Walmart was much more likely to go through. SoftBank’s investment in the Bengaluru-based online retailer had grown to $4 billion, Son said. SoftBank’s Vision Fund, the world’s biggest private equity fund, had invested $2.5 billion in Flipkart last August.

Sources have previously told Reuters that SoftBank would sell all its shares in Flipkart to Walmart.

(Reporting by Sam Nussey; Writing by Sankalp Phartiyal; Editing by Muralikumar Anantharaman)

VentureBeat

VentureBeat's mission is to be a digital town square for technical decision-makers to gain knowledge about transformative technology and transact. Our site delivers essential information on data technologies and strategies to guide you as you lead your organizations. We invite you to become a member of our community, to access:
  • up-to-date information on the subjects of interest to you
  • our newsletters
  • gated thought-leader content and discounted access to our prized events, such as Transform 2021: Learn More
  • networking features, and more
Become a member