SoftBank chief Masayoshi Son’s arrival to India recently has added another dimension to Flipkart’s acquisition talks going on in the industry, Inc42 has reported.
SoftBank, which is the biggest stakeholder in Flipkart, reportedly is in favour of Amazon acquiring Flipkart over Walmart as in that case there are chances that it would get to keep its shares in Flipkart post the merger too.
Amazon has also reportedly indicated that its offer for Flipkart will be 10 per cent higher than what Walmart would be offering. However, except SoftBank all other shareholders in Flipkart are keen on a Walmart acquisition over fears that Amazon might dilute the Flipkart brand in favour of its own.
Tiger Global, Naspers, Tencent, Microsoft and Accel Partners are the other significant shareholders in Flipkart at the moment, with Microsoft coming on board just an year back.
Walmart, on the other hands, wants Flipkart to continue functioning as an independent entity which is viewed favourably by the Flipkart board and executives as they get to continue their association with Flipkart.
However, skeletons in Walmart’s closet might lead to the deal going the Amazon way, especially if Masayoshi Son puts his weight behind it. Walmart has a dubious history of past forays into the Indian and Chinese markets marred with allegations of bribery and unethical conduct. Walmart had to earlier part ways with the Sunil Mittal-led Bharati group after allegations that it had paid $200 million in bribes to secure real estate deals in India.
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