Wal-Mart Stores Inc.is in talks to buy online retailer Jet.com, the Wall Street Journal reported on Wednesday, citing people familiar with the matter. Jet’s warehouses and customer data would help Wal-Mart in its push to expand its online business and home delivery services. (NASDAQ:AMZN) on the basis of a vast marketplace that requires billions of dollars in funds.
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Although the financial details of the potential deal with Jet.com remain unclear, sources value the website at $3 billion, CNBC reports.
Jet.com launched to plenty of fanfare and with a giant war chest just over a year ago.
The target company has gained over $500 million in capital investments from venture capital firms, such as Accel Partners, Fidelity Investments, and New Enterprise Associates, along with banks like Goldman Sachs.
While Wal-Mart is the second-largest USA retailer in terms of online sales, its growth has recently slowed down.
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Started and helmed by Diapers.com founder Marc Lore, Jet has sought to challenge Amazon by offering lower prices based on a formula that takes into account basket size and the proximity of the merchandise to buyers, as well as other factors.
