Walmart eyes options to buy Flipkart, SoftBank turns out to be a hurdle
New Delhi : Walmart is eyeing options to buy Flipkart to compete with India's major e-commerce website Amazon. But SoftBank, which holds a good amount of share in Flipkart is not convinced with it and has rejected the offer.
According to a media report, the Walmart had estimated the value of Flipkart between $20 billion and $23 billion.
“SoftBank is not willing to cash out this early as they see themselves as a long-term investor in Flipkart,” a media report quotes a close source from the company.
Nothing concrete has been finalized yet as the deal is in its early stage. Walmart is expected to push fresh capital in Flipkart and also buy shares from existing investors including Accel Partners and Naspers.
Even if Walmart does not but SoftBank shares in the company, it will result in being the major shareholder.
So far none of the three companies - Flipkart, SoftBank and Walmart - have said anything official on the deal.