The stock of eBay Inc (NASDAQ:EBAY) closed at $42.20 gaining 42.20 in yesterday’s trading session. It was a short while back that Amazon.com, Inc (NASDAQ:AMZN) started making overtures to buy a huge stake in Flipkart, which happens to be an Indian online marketplace. A person familiar with the matter but who wanted his identity shielded for reasons best known to him proceeded to disclose that the business guru had made it known that it would be moving ahead to perform its due diligence.
Everyone following closely on the matter thought that the competing offer to be forwarded by Amazon could turn out to be one that could raise the specter of a fierce and at the same time costly bidding war. Different opinions about the future have been made, but the one point that is for sure is that it isn’t going to be a smooth ride for Walmart Inc (NYSE:WMT) all along. To this point in time, none of the offers has materialized yet.
It was today that one market observer proceeded to disclose that a new speed bump has popped up along the way and it is in the form of eBay Inc (NASDAQ:EBAY).It is a challenge that will compel Amazon to operate out of a side deal with the auction site and that is in close consideration of the point that it is both a partner and an investors in Flipkart.
The most recent reports indicate that eBay in the previous year made an investment worth $500 million in the marketplace platform. This was a move that ended up giving the business guru a 5.44% ownership stake in the business. In line with the deal, Flipkart assumed control of the operations of eBay in India.
It is also said that Microsoft Corporation (NASDAQ:MSFT) and Tencent made the move to make their investments around the same period of time and that was what resulted in Flipkart managing to raise almost $1.4 billion. It was a deal that would be moving quite a long way helping make accessible eBay’s inventory and that is in specific reference to the Indian consumers.