Amazon Reportedly Makes Offer on India-Based e-Commerce Flipkart

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After Kalyan Krishnamurthy (CEO) and Binny Bansal (Group CEO), Flipkart's Executive Chairman Sachin Bansal is next on the line who may also exit the company in case of a successful completion of the deal with Walmart.

In a move seen as a precursor to U.S. retail giant Walmart acquiring a majority stake in Flipkart, the Indian e-commerce player has bought back shares worth $350 million from investors in its Singapore-based parent to regain private limited status in the country.

The company's valuation is now estimated to be $18 billion, based on the buyback price paid to investors, including premium.

One of the persons said possible scrutiny from the Competition Commission of India (CCI) as well as risks related to sharing competitive data as part of due diligence were some of the reasons for Flipkart investors and management favouring a deal with Walmart and not Amazon, even though the rival's bid was slightly higher.

It looks as if Walmart has reportedly emerged the victor in what was becoming a bidding war with Amazon for India's online retailer Flipkart.

This would still leave biggies like Tiger Global, Accel, Microsoft, Naspers and Ebay on the deal table, it said adding that Flipkart's holding company is now a private company - Flipkart Pte Ltd.

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Bengaluru-based Flipkart, started by two former Amazon employees, is fighting Amazon to grab a bigger piece of India's massive online retail market which, according to Morgan Stanley, could be worth $200 billion in a decade.

In a Flipkart-hosted press conference today, the CEOs of Flipkart and ASUS - Kalyan Krishnamurthy and Jerry Shen - came together to announce a long-term strategic partnership to launch products in India.

Alphabet Inc., Google's parent company may also be looking to invest in Flipkart. The US retailer has been working to win over the Indian company since at least a year ago.

Amazon has already been aggressively expanding in the country on its own.

Walmart is now seeking a bigger stake than previously expected. The latest developments suggest that there has been a divide at the top of Flipkart with the two co-founders taking opposite sides in deciding the future of India's most valued internet company.

SoftBank stands to make a tidy profit on a stake it took only past year.

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