Walmart takes Jet.com down the aisle in $3bn takeover
US retailing giant Walmart is expected to formally announce the $3bn takeover of online retailer Jet.com later today in what could be the largest ever takeover of an e-commerce company.
The audacious move will see Jet continue to be run by co-founder Marc Lore as it is repositioned as Walmart’s e-commerce division although neither party has yet confirmed the takeover.
Walmart has been slow to appreciate the potential of e-commerce and its gargantuan offer represents a huge throw of the dice to muscle in on a market which is completely dominated by Amazon.
The deal would be an admission by Walmart chief exec Doug McMillon that he will need all the help he can get if he’s to overhaul the lead built up by Amazon if it is to have a hope of replicating its success in bricks and mortar for the online sphere.
Walmart currently generates just $14bn in annual e-commerce sales versus $99bn for Amazon, with the former also suffering from a decelerating rate of growth.