WAL-MART Acquired Jet.Com In The Form Of 3 Billion US Dollars Plus 300 Million US Dollars In Cash.

Genuine acquisition

Website Jet.com!

According to foreign media reports, WAL-MART said on Monday that it had completed a $3 billion 300 million deal to buy online retailer Jet.com.

In early August of this year, WAL-MART announced the acquisition of Jet.com in the form of 3 billion US dollars in cash plus 300 million US dollars.

The deal shows that WAL-MART is willing to invest heavily in the electricity sector to boost its online sales.

In 2015, WAL-MART's online sales totaled $13 billion 700 million, but its share of the company's annual revenue remained minimal.

Although WAL-MART and Jet.com will still operate independently as independent brands, WAL-MART said it will integrate Jet.com's "intelligent technology" - a technology that can find ways to cut costs and reduce them in real time.

Price.

It is understood that Jet.com is co founded by Mark Carol (MarcLore), Mike Hanrahan, and Nate Faust, of which CEO Mark Carol is also the founder of Diapers.com, Soap.com, Wag.com parent company Quisi.

According to the agreement reached between the two sides, Jet.com co-founder and CEO Mark Carol (MarcLore) will also be responsible for the Jet.com and Walmart.com businesses and report to WAL-MART CEO Dong Minglun (Doug McMillon).

In addition, Lohr will also be executive vice president of WAL-MART and President and CEO of WAL-MART's US electricity supplier business.

It is worth noting that Luo's experience in the field of e-commerce is extremely rich. He was the founder of Quidsi, the parent company of Diapers.com, which was bought by Amazon in 2010 at a price of $500 million.

According to the latest paction, Lohr will receive 3 million 550 thousand restricted common shares of WAL-MART, which can be liquidate in the next 5 years.

The specific value of these stocks depends on WAL-MART's share price.

According to WAL-MART's closing price of $72.09 on Monday, the total value of the 3 million 550 thousand shares is nearly $256 million.

Jet.com formally launched its operation in July 2015. In November 4th of the same year, it announced that the user volume exceeded 1 million. In November 24th, it announced $350 million in financing, and the early investors included Alibaba.

WAL-MART said that in the first year of its establishment, Jet reached $1 billion in GMV (gross trading volume) and 12 million SKUs (stock unit), adding 400 thousand new users per month and 25 thousand orders per day.

WAL-MART and Jet.com will retain their respective brands, of which Warmar.com will focus on promoting the daily low price strategy. Jet.com will continue to provide unique and differentiated user experience. WAL-MART and Jet.com will use the innovative technology solutions of both sides to develop new services to save time and money for customers.

Some analysts said that the deal would not allow WAL-MART to catch up with Amazon, the leader of the electricity market, in online sales, but would narrow the gap between the two sides and widen the gap between WAL-MART and other online retailers.

In recent years, Jet.com has invested heavily in TV advertising and other marketing means, but it has been very inefficient. For WAL-MART, the acquisition of the company should help speed up its profit making process.

Dong Minglun wrote on WAL-MART's official blog on Monday. "WAL-MART and Jet.com always remember how to save time and money for users.

After the merger, we will do better in these two aspects, creating seamless shopping experience from application, website to store. "