Flipkart deal: Walmart, eBay may enter fresh round of talks

Global firms Walmart and eBay may enter a fresh round of talks with respect to the USD 12 billion Flipkart deal as the latter holds a 5 per cent stake in the company, according to a report in Business Standard.

Under the Flipkart-eBay deal, the India-based firm is allowed to sell merchandise from certain merchants at eBay for four years. Walmart, however, may have to either wait for four years or negotiate with eBay on whether the firm will continue to do business with Flipkart in the next few years, the report said quoting a Recode article.

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The talk may be held over the next few days, sources told the paper.

Wallmart is eyeing about 55 per cent stake in Flipkart through a mix of primary and secondary stake sale. Some of the key investors in the Bengaluru-based company, including New York-based investment firm Tiger Global Management, South African media conglomerate Naspers, venture capital firm Accel and China’s Tencent Holdings, have already agreed to sell their stakes to Walmart.

Also read — Walmart a better bet for Flipkart than Amazon: Report

Talks have been on between Walmart and SoftBank, however, it is yet to reach an agreement. The Japanese firm holds 20 per cent stake in Flipkart.

“While Walmart is valuing Flipkart at close to $20 billion, SoftBank values Flipkart at over $21 billion. This would make the value of the primary as well as secondary shares higher, which would benefit SoftBank,” a source told the paper. SoftBank said it does not comment on speculations.

Flipkart founders Sachin and Binny Bansal, investors Tiger Global, and other investors were in favour of a deal with Walmart, sources added.moneycontrol


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