Walmart on Monday (August 8, 2016) announced that it has acquired the rising US company Jet.com for a price of $3 billion.
According to Walmart CEO Doug McMillon, the deal will help both companies as Walmart will grow faster and get the seamless shopping experience quicker while Jet.com will become more successful in a shorter period of time.
In buying Jet.com, Walmart is getting a growing company that recently gained $1 billion in sales and 12 million stocked items in just a year. In contrast, Walmart’s online sales growth has been declining in five consecutive quarters.
Jet CEO Mark Lore, who has a 25 percent stake in the company, will reportedly continue to lead Jet under Walmart.
Even though the deal has been agreed by both parties, Walmart and Jet will still continue to operate separately as the former will focus on providing the company’s everyday low price strategy while the latter will continue to bring a unique customer experience with curated assortment.
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