India’s online e-commerce site Flipkart finally agreed to sell its 77-percent stakes to US retail behemoth Walmart for $16 billion. Flipkart’s arch-rival Amazon too pitched with its bid to acquire the Indian e-commerce site but after much deliberation and negotiation, Flipkart decided to accept Walmart’s deal.
Flipkart Walmart Deal: Key Highlights
1. As a part of the deal, Walmart will infuse $2 billion directly in Flipkart.
2. Flipkart and Walmart India will continue as distinct brands while they reap leverages from synergies.
3. Flipkart co-founder Sachin Bansal will be selling his remaining 5.5 percent stakes and will exit from the company entirely
4. Co-founder Sachin Bansal will be new Executive Chairman and Group CEO of Flipkart. His stakes in the company will reduce to 4.5 percent from existing 5.1 percent.
5. Sachin Bansal will also be taking charge of other Flipkart group companies Myntra, Jabong and PhonePe.
6. Flipkart’s existing CEO Kalyan Krishnamurthy will continue to perform his duties as per existing norms.
7. Softbank, Nasper LTD, and eBay also offloaded their stakes in the company.
8. Tiger Global Management, which was the largest investor in the company, will cut down its stakes by 60 percent to 8 percent.
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9. Flipkart’s new board will include Binny Bansal, Tencent, and Tiger Global apart from new members from Walmart.
10. Flipkart is likely to get listed on the stock exchange as Walmart’s subsidiary by 2019-20.