Wal-Mart Stores and Jet.com today announced they have entered into a definitive agreement for Walmart to acquire Jet for approximately $3 billion in cash, a portion of which will be paid over time. Additionally, $300 million of Walmart shares will be paid over time as part of the transaction.
Jet.com will continue to retain a separate brand, Walmart said today, as part of Walmart’s strategy to widen the types of consumers that it targets beyond Walmart’s core user base today; and also to broaden the companies that it works with to serve those customers.
“We’re looking for ways to lower prices, broaden our assortment and offer the simplest, easiest shopping experience because that’s what our customers want. We believe the acquisition of Jet accelerates our progress across these priorities. Walmart.com will grow faster, the seamless shopping experience we’re pursuing will happen quicker, and we’ll enable the Jet brand to be even more successful in a shorter period of time. Our customers will win. It’s another jolt of entrepreneurial spirit being injected into Walmart.”, said Doug McMillon, president and CEO, Wal-Mart Stores, Inc.
Marc Lore, the CEO of Jet.com, will lead both Jet and Walmart online, taking over fromNeil Ashe. “This is Walmart being even more committed to winning in e-commerce,” said Doug McMillon, president and CEO of Walmart, in a conference call with investors, who said described the executive change was “a natural transition.”
“What [Lore] has built at Jet has applications at Walmart,” he added. “The job [he will be taking over] is more focused on U.S. e-commerce and that makes sense to us.”
Wal-Mart Stores, Inc. (NYSE: WMT) helps people around the world save money and live better – anytime and anywhere – in retail stores, online, and through their mobile devices. Each week, nearly 260 million customers and members visit our 11,527 stores under 63 banners in 28 countries and e-commerce websites in 11 countries. With fiscal year 2016 revenue of $482 billion, Walmart employs more than 2.3 million associates worldwide.