Walmart is buying for $3 billion

Andrew Cummings
August 13, 2016

Walmart has agreed to buy the e-commerce company for $3bn in cash.

Wal-Mart said it would pay $3 billion in cash, part of which would be paid over time along with an additional $300 million in its shares. will grow faster... we'll enable the Jet brand to be even more successful...

The deal is expected to close by the end of this calendar year.

Walmart is buying for $3 billion

More interestingly, Marc Lore, the CEO and co-founder of Jet, will now handle both Jet and Walmart's online operations, taking over from incumbent Neil Ashe.'s ambitions and positioning have in some ways far outstripped what the company has actually achieved in its relatively short life as a startup - with early investor interest, it seems, largely based on the strength and vision of the founding team.

The deal marks a significant shift in how Wal-Mart approaches e-commerce.

Earlier this year, the financial services firm Cowen and Company predicted that Amazon could grab a much greater share of retail sales in North America between now and 2018, while Walmart's share would remain relatively unchanged. is an online retailer that offers an Amazon-like presence of goods ranging from furniture to household items and electronics. Last year, Walmart's ecommerce sales reached about $14 billion, accounted for 3% of its total revenue.

Walmart is coming for the e-commerce throne, Amazon.

"Today, I couldn't be more excited that we will be joining with Walmart to help fuel the realisation of that vision". was co-founded by Lore, Mike Hanrahan and Nate Faust in 2014 and has raised more than $800 million in funding from the likes of Accel Partners, New Enterprise Associates and Fidelity among others. Combined, Walmart and Jet plan to leverage technology solutions to develop new offerings for customers. About a year ago, Walmart made a decision to transform itself into a seamless shopping experience for consumers by introducing Shipping Pass, a service which offers unlimited, free three-day shipping for only $50 annually, less expensive than Amazon's Prime program.

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