02 May Report: Amazon just offered to buy a 60% stake in India’s Flipkart
That’s according to sources who spoke with CNBC-TV18 (via Reuters). Amazon’s offer is reportedly a move to counter Walmart’s bid to become the largest shareholder in the Indian e-commerce firm. Walmart’s global team was expected to come to India as soon as next month to close the deal, but with Amazon’s bid everything could be up in the air now. On top of its offer to buy a 60% stake in Flipkart, Amazon is also reportedly offering a “breakup fee” of $2 billion for Flipkart to walk away from Walmart’s offer. As for why both U.S. retail giants want a piece of Flipkart, India’s e-commerce market is expected to be worth $200 billion annually in the next 10 years.
Source: Fast Company