Snapdeal has asked bigger rival Flipkart to pay at least $900 million in
stock after rejecting the latter's latest buyout offer, according to a
Livemint report. Flipkart is yet to respond to Snapdeal’s demand but the
company will send a new offer this week. Earlier this month, Snapdeal
rejected Flipkart's $800-850 million buyout offer.
The sale of
Snapdeal is likely to be accompanied by an equity infusion into Flipkart
by SoftBank, which is also in talks to buy part of Tiger ’s 30-33%
stake in Flipkart.
SoftBank’s
entry into Flipkart will transform the power dynamics at the board of
the online retailer, potentially reducing the influence of Tiger. If the
SoftBank deal goes through, Flipkart will have five strong voices on
its board: SoftBank, Naspers-Tencent, Tiger Global, early investor Accel
and the company’s co-founders Binny Bansal and Sachin Bansal.
Already,
partly in anticipation of the deal, Sachin, and in particular, Binny,
have increased their involvement in the running of Flipkart, reported on 11 July.
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