US retail empire Walmart is expected to today reveal plans to buy Jet.com for $3bn, the largest US e-commerce company acquisition in history.
Walmart will hope that the acquisition of Jet.com will give it the ammunition it needs to take on Amazon, which is dominating the e-commerce space in the US.
The will certainly give the retail giant access to Jet.com’s logistics and delivery expertise.
According to Recode, Jet.com founder and CEO Marc Lore is expected to lead Walmart’s US online business and will report directly to Walmart CEO Doug McMillon.
Lore owns 25pc of Jet.com and could make $750m from the deal, as well as incentive bonuses.
Jet.com competes against Amazon by focusing on a lower-priced products strategy, with products typically 10pc to 15pc lower than competitors.
The company was founded in 2014 by Lore to create a new online megastore to compete against Amazon, Walmart and Costco.
Jet.com is understood to have raised more than $800m in financing since its founding.
Both Walmart and Jet.com are expected to announce the deal today (8 August).
Walmart image via Shutterstock
Get your early bird tickets now!