Walmart Buys Flipkart for $16B to Boost E-Commerce Presence in India

Today’s topics include Walmart outbidding Amazon to acquire India’s Flipkart for $16 billion, and Senate Democrats introducing a resolution to reverse the FCC net neutrality vote.

After competing against Amazon for years in e-commerce, Walmart revealed on May 9 that it outbid the tech giant for Flipkart and will pay $16 billion to buy a 77 percent stake in the Indian e-commerce company.

While this is Walmart’s largest acquisition to date, to put this investment into perspective, $16 billion for the purchase amounts to only 6.5 percent of Walmart’s $245 billion market cap. This acquisition will ignite an international skirmish with Amazon, which already has identified India, the world’s second-most populous country, as the emerging market of the future.

“Flipkart’s talent, technology, customer insights and agile and innovative culture will benefit Walmart in India and across the globe,” Walmart said in a media advisory.

Democratic Senator Edward Markey has introduced a resolution in the U.S. Senate that, if passed by both houses of Congress and signed by President Trump, would overturn the actions of the Federal Communications Commission when it voted to reclassify the internet under Title II of the Communications Act.

Senate Democratic Leader Chuck Schumer plans to file a Discharge Petition under the Congressional Review Act that would force a floor vote on the resolution, potentially as early as this week. If the resolution passes, the Senate will bring the resolution to the House for consideration, and then to President Trump.

However, considering that the president has already praised the action by the FCC, it seems remote he would pass the resolution.

Today’s topics include Walmart outbidding Amazon to acquire India’s Flipkart for $16 billion, and Senate Democrats introducing a resolution to reverse the FCC net neutrality vote.

After competing against Amazon for years in e-commerce, Walmart revealed on May 9 that it outbid the tech giant for Flipkart and will pay $16 billion to buy a 77 percent stake in the Indian e-commerce company.

While this is Walmart’s largest acquisition to date, to put this investment into perspective, $16 billion for the purchase amounts to only 6.5 percent of Walmart’s $245 billion market cap. This acquisition will ignite an international skirmish with Amazon, which already has identified India, the world’s second-most populous country, as the emerging market of the future.

“Flipkart’s talent, technology, customer insights and agile and innovative culture will benefit Walmart in India and across the globe,” Walmart said in a media advisory.

Democratic Senator Edward Markey has introduced a resolution in the U.S. Senate that, if passed by both houses of Congress and signed by President Trump, would overturn the actions of the Federal Communications Commission when it voted to reclassify the internet under Title II of the Communications Act.

Senate Democratic Leader Chuck Schumer plans to file a Discharge Petition under the Congressional Review Act that would force a floor vote on the resolution, potentially as early as this week. If the resolution passes, the Senate will bring the resolution to the House for consideration, and then to President Trump.

However, considering that the president has already praised the action by the FCC, it seems remote he would pass the resolution.

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