Wal-Mart in Talks to Acquire Jet.com
Wal-Mart is reportedly in negotiations with Jet.com to acquire the online retailer. Sources say the acquisition cost could be more than $3 billion. Marc Lore, CEO of the year-old Jet.com and founder of Diapers.com, has drawn more than $500 million in financing capital from venture firms after the initial launch of the company resulted in a less-than-desirable profit. With news of the possible acquisition, Wal-Mart shares edged up slightly while Amazon.com's declined.
Total Retail's Take: Acquiring Jet.com could help Wal-Mart become a serious threat to Amazon for e-commerce supremacy. Right now it's a one-sided fight. Wal-Mart currently offers 11 million products vs. Amazon's 260 million. After the success of Amazon's self-made holiday, Prime Day, e-commerce is top of mind for big-box retailers, especially with the competitive back-to-school and holiday selling seasons approaching. Wal-Mart CEO Doug McMillon said the company would become "more aggressive" in growing its online business during a shareholders call in June. Perhaps the Jet discussions were already taking place, at least internally. Let's see how Amazon responds to the news.