Walmart’s Flipkart deal grows complicated—thanks to eBay
Before Walmart can officially buy a majority stake in India’s leading e-commerce provider, it may have to strike another deal first.
The discount giant is likely to reach a deal to become a majority stakeholder in Flipkart by the end of June. However, to seal the deal, the discount giant will likely have to first work out a deal with Flipkart’s investor and partner, eBay, according to ReCode.
Last year, eBay invested approximately $500 million in the Indian e-commerce company, taking a 5% stake in the business, and giving up its eBay India operation in the process. eBay also signed a four-year exclusive commercial arrangement to partner with Flipkart, the report said.
The agreement was designed to give merchants who sell on Flipkart access to more than 150 million new customers from eBay world-wide. The deal also provides eBay sellers outside of India with access to a new group of consumers inside of that country, ReCode reported.
If Walmart can work through the details with eBay, Flipkart will be the discount giant’s biggest acquisition of an online business, as it has offered to between $10 billion and $12 billion for a 51% stake in the company, the report added.
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