Amazon and Flipkart both face the toughest competition from one another in the market. This time the offer made from Amazon to Flipkart is something that is the talk of the town. As per the reports of CNBC-TV18 reports published on Wednesday, Amazon has extended an offer to the founders of Flipkart. If reports are to be believed, Amazon has made a formal offer for buying 60% of Flipkart’s stakes. While the founders of Flipkart are in favor of the offer, the deal is yet to be sealed.
Amazon India wants to acquire Flipkart
The offer also includes an amount of $2 million as a breakup fee and a non-compete clause. While both the big names have entered the final stages of the discussion, the deal is expected to get closed by the end of June.
It is estimated that this deal gets confirmed, Amazon will be the only leading name in the e-commerce market. Many experts of the market are expecting that Amazon will be leading a share worth $200 billion. Although there has been no official confirmation from any of the side, the Walmart global team will be visiting India soon with respect to the deal.
The meeting of SoftBank’s CEO, Mr. Masayoshi Son with Walmart’s CEO, Mr. Doug McMillon, has further added spark a buzz to the discussions. This meeting which happened last month was in the matter of concern with this deal.
On the other hand, a $12 billion investment is expected to be made in Flipkart, for its majority stake, by US brick-and-motor behemoth. With this investment, the value of Indian unicorn will likely go up till $18-20 billion. However, no change is expected in the top management, but things will certainly shake up for Flipkart’s boards. As this American company could hop on 4 out of the total 10 board seats, this could be a massive event for the e-commerce market.