As per FactorDaily, Flipkart is pegged at $20 Billion while Walmart has put the company’s value at $22 billion. This means that Walmart has to spend $16 Billion to acquire Flipkart. Google’s parent company, Alphabet is also said to be participating in the buyout via an investment of $3 billion. Meanwhile, Kalyan Krishnamurthy will continue to serve as the Chief Executive of Flipkart. The deal is expected to include both cash and stock component. Cash component is likely to be around 55%. With this deal, many of the large investors in Flipkart will exit. That being said, investors like Tencent, Microsoft, and Tiger Global will not cash out completely. Softbank with 20% of shares is speculated to exit the company and rake in a total of $4 billion in the process. The deal was lead by Walmart with JP Morgan Chase as its banker and with Amarchand Mangaldas as legal advisors and Bain and Co as management consultants. Flipkart and Walmart are yet to announce the acquisition officially.
