Wal-Mart in Talks to Buy Web Retailer Jet.com for $3B

Post by sargun » Wed, Aug 03, 2016, 5:48 PM UTC

was_boring wrote: post #20

sargun wrote: post #2

This would make Wal-mart the biggest production Azure user in terms of actual traffic. That'd be a killer position for Microsoft to be in.

> That'd be a killer position for Microsoft to be in. What do you mean by this? I don't deal with things of that scale, but I would imagine it would put Wal-Mart in a very good position to negotiate down near at-cost. It could be good for Microsoft on the PR front against Amazon, but bad for profit margins (on this one account).

Post by jodah » Wed, Aug 03, 2016, 5:59 PM UTC

brianbreslin wrote: post #83

ktamura wrote: post #55

This buyout is based on FUD, and FUD-based investment is a recipe for disaster. From the OP: >But for both Jet and Wal-Mart, Amazon’s frenzy of warehouse construction and fast delivery—as quickly as one-hour—have proved formidable. The retailer has logged three straight quarters of record profit while locking in an estimated 60 million members to its $99-per-year Prime service, cultivating a loyal customer base and g…

Walmart has already spent close to $12B funding walmart.com/labs and not made a dent in catching Amazon. Jet has a super smart team looking at ways to gain margins in areas amazon is ignoring. short term their investors won't appreciate this buy.

Post by hueving » Wed, Aug 03, 2016, 6:00 PM UTC

carsongross wrote: post #78

ktamura wrote: post #55

This buyout is based on FUD, and FUD-based investment is a recipe for disaster. From the OP: >But for both Jet and Wal-Mart, Amazon’s frenzy of warehouse construction and fast delivery—as quickly as one-hour—have proved formidable. The retailer has logged three straight quarters of record profit while locking in an estimated 60 million members to its $99-per-year Prime service, cultivating a loyal customer base and g…

Upper management is filled with cargo cult thinking around technology. I see it even in software companies. Someone advocating a rational, realistic way forward (like you) would be pushed out in favor of people who "get it" and want to "move things forwards dramatically"

Post by Someone1234 » Wed, Aug 03, 2016, 6:00 PM UTC

michaelbuddy wrote: post #81

ktamura wrote: post #55

This buyout is based on FUD, and FUD-based investment is a recipe for disaster. From the OP: >But for both Jet and Wal-Mart, Amazon’s frenzy of warehouse construction and fast delivery—as quickly as one-hour—have proved formidable. The retailer has logged three straight quarters of record profit while locking in an estimated 60 million members to its $99-per-year Prime service, cultivating a loyal customer base and g…

Jet, based on its promotional content is heavy into the home products category. Walmart would love to knock them out to absorb that competition to getting delivery and even subscription delivery of home products. So it may be the price Walmart is willing to pay to ensure nobody is making Jet their new source for houseware products and avoiding the WalMart Brand. We also don't know what else Jet has in the pipeline, n…

Post by swingbridge » Wed, Aug 03, 2016, 6:07 PM UTC

zd4akaq85a wrote: post #82

swingbridge wrote: post #67

Given the proposed price relative to funding raised it's likely the investors will get their money back plus a small return, employees with options will likely get nothing or perhaps a token amount (after all the preferred terms are cashed in) and the founder gets to sell off another highly unprofitable business. This will be chalked up as a "failed" startup but at least the investors get to take their money and play…

Really, you are claiming that if a company raised $570M and sold for $3B, the common shareholders will get screwed? Do you have some information we don't? The publicly reported valuation at the last funding round was $1.4B. Those would have to be some impossibly harsh terms to not leave well over $1B to the common shareholders.