Walmart's Flipkart plans put on hold by eBay
Walmart’s plans to buy a majority stake in Indian e-commerce platform Flipkart have been subjected to an agreement being reached with eBay first.
Flipkart earlier successfully completed its merger with eBay which was announced on April 10, 2017. Due to this merger, despite getting control of Flipkart, Walmart may not be able to consummate actual merchandise deals with Flipkart once it invests in it according to Recode.
Commenting on the deal announcement then, Devin Wenig, president and chief executive officer of eBay Inc said: “The combination of eBay’s position as a leading global eCommerce company and Flipkart’s market stature will allow us to accelerate and maximize the opportunity for both companies in India.”
Meanwhile, according to Reuters, Walmart plans to invest around $12bn to acquire 51% stake in Flipkart to combat rival Amazon in the Indian market.
However, Flipkart reported loss of Rs 8,771 crore ($1.4bn) for the financial year ending March 2017 in its latest regulatory filing shows which has forced Walmart to think about a deal with eBay.