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Walmart will Acquire Jet.com in a Whopping $3 Billion Cash Deal

World’s largest retail giant Walmart will be acquiring the startup Jet.com in a massive cash deal. Big brands like Amazon is seeing this as a strategic business move to create a storm in the online shopping marketplace. The deal was announced on Monday making Walmart sign the costliest cheque in its history.

Walmart currently holds the 2^nd place as the most visited retail website falling behind Amazon which rules the American markets. According to Doug McMillon, president and CEO, Walmart Stores, Inc “Walmart.com will grow faster, the seamless shopping experience we’re pursuing will happen quicker, and we’ll enable the Jet brand to be even more successful in a shorter period of time”.

The deal will be benefited by both parties as Walmart and Jet will reportedly maintain their separate business entities. There is an additional stake of $300 million worth Walmart shares included in the massive deal. For Jet.com this is definitely a huge reason to celebrate as their co-founder and CEO Marc Lore explained, “The combination of Walmart’s retail expertise, purchasing scale, sourcing capabilities, distribution footprint, and digital assets – together with the team, technology and business we have built here at Jet – will allow us to deliver more value to customers.”

Walmart will be releasing its 2^nd quarter earnings report on 18^th August and this move will surely create a big buzz before the release of its quarterly earning details. Industry reports have suggested that Jet has been successful in targeting more affluent shoppers (individuals with yearly earnings more than $150,000) than Walmart. This can be considered as another valid reason for Walmart to enter this high network group. Jet’s bulk ordering model will be taken into account by Walmart. Tremendous growth in the eCommerce world has made the brands come together to create a powerful entity.