Flipkart is likely to provide Wal-Mart the leverage it needs to fight Amazon.com in India and globally, making the purchase of a stake in Flipkart very strategic.
On Wednesday, sources familiar with the matter at hand have told CNBC-TV18 that Amazon.com Inc has made a formal offer to purchase a 60% stake in Indian online retailer Flipkart.
It is not clear whether Amazon’s offer of $2 billion to Flipkart, as a breakup fee, is in addition to its offer.
Significantly, Amazon’s offer is likely to be on par Walmart Inc’s bid to purchase a stake in Flipkart.
Neither Flipkart’s, Wal-Mart’s or Amazon spokesperson were available for comment.