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00:00:00
>> Walmart taking its battle with Amazon to a new level dishing out $16 billion Wednesday to buy a majority state in Indian e-commerce giant Flipkart. Amazon had expressed interest in Flipkart But Walmart swooped in with it's massive offer, desperate to grab a piece of India's growing retail market.
00:00:22
Reuters correspondent, Nanthada Bose.>> So Walmart has been waiting on the sidelines for over a decade to enter India.>> And what happened in the meantime was Amazon kinda swooped in. Started this e-commerce business and now they have 27% of the market. This was very critical, the market's a fast growing one.
00:00:42
They've identified it as a growth market. There's a fast growing middle class, GDP growth is much higher than other emerging markets.>> But Walmart's investors aren't too thrilled about its largest deal ever, with shares dropping nearly 4% Wednesday.>> There are a bunch of concerns. Firstly, around the valuation of the deal, driven up by Amazon and Google's interest in the deal, as well.
00:01:08
So I was talking to a bunch of investment managers, and they seem to suggest that, you know when it comes to sort of the market dynamics. They don't expect a significant change because of Walmart kind of moving in. So they still expect Flipkart and Amazon to sort of be the bigger players.
00:01:23
And so if you're not necessarily able to sirt of change those dynamics by paying this kind of premium, then why are you doing it?>> Thank you Flipkart.>> Launched in 2007 by two former Amazon employees. Flipkart also started off as an online book seller. But soon turned into a much bigger player with physical stores as well.
00:01:44
>> Now they sell everything from electronics to apparel. They even have payments business, they have a big logistics business. They're very popular with kinda the Indian millenial. A young, sort of urban demographic.>> But Booth says Indian consumers aren't flipping out about Wednesday's deal. Some taking to Twitter to share their disappointment over an Indian company selling out to a large American corporation.