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Flipkart denies speculation about selling to Amazon

Bengaluru- India’s ecommerce giant Flipkart denies speculation about selling to Amazon worth $8 billion. Flipkart is India’s leading ecommerce company with more than 50% market share as reported in 2016. Amazon is staying at third position while Snapdeal marginally ahead of Amazon.  This even looks some a story plotted by some invisible source or to defame current market strength of Flipkart by unethical means.

Sachin Bansal the Flipkart’s CEO responded to this news as - “The report is pure fiction and seems to have been constructed based on invisible “sources” that have highly imaginative minds and given to improbable flights of fancy. There have been no talks or discussions for potential sale. Flipkart continues to be the market leader in India and we are in this business for the long haul,” a Flipkart spokesperson told Business Standard in an email. 

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Current market evaluation

In the latest report published at Business standard Morgan-Stanley devaluated Flipkart’s investment value in the online marketplace by $4 billion to $11 billion. According to some unknown sources Amazon offered $5 billion for online market place and $3 billion for its logistic business during the last quarter of 2015 may month.

The Economic Times reported on Wednesday that Amazon had made a preliminary offer of up to $8 billion to acquire Flipkart, almost half of its previous valuation of $15.2 billion. The newspaper said they have spoken to three sources who were top executives in venture capital and private equity firms.  

Courtsey- Business standard