Equities Tech

Amazon shares news: tech giant reportedly offers to buy majority Flipkart stake

Amazon shares opened a little lower in the US Wednesday following reports the tech giant has offered to buy a majority stake in India’s Flipkart.

The news is yet to be confirmed by the global etailer, however, according to CNBC – who cited sources – Amazon could purchase 60% of the ecommerce business. The offer comes as Walmart is in advanced talks with the business over a deal.

Amazon shares opened 0.29% lower at $1,577.60. Walmart shares, meanwhile, were 0.54% in the red at $86.94.

Amazon offers follows Walmart talks

The reported offer from Amazon would likely be similar to that from Walmart, the report suggests. While Amazon would pay a breakup fee of $2 billion in addition to the price for 60% of the business, Walmart’s offer is for 80% of Flipkart.

The unconfirmed news of an Amazon bid for Flipkart comes after shareholder Softbank was said to be waiting for Amazon to make a rival offer. Separate repots suggest Softbank would prefer a deal with Amazon over Walmart.

Amazon announces more tech expansion pans

In other news, Amazon has announced plans to expand its Boston tech hub and add some 2,000 additional staff to the facility.

The news follows a similar expansion at its Vancouver tech hub as the tech giant accelerates its tech innovation abilities.

“Amazon is excited to create 2,000 more jobs in greater Boston,” said Rohit Prasad, Amazon’s, Vice President and Head Scientist of Amazon Alexa, who is based in the Boston area.

“In just a few years, we’ve grown from a handful of software developers and scientists to a team of more than 1,200, inventing new capabilities and products on behalf of millions of customers around the world,” Prasad said.

In addition to the new Amazon tech staff, the global business will begin work on a new facility in the Boston waterfront area. The Seaport project will create a 430,000 square feet location for Amazon which is expected to be completed in 2021.

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