Walmart’s gamble and what it means for India C. P. Chandrasekhar

Much of the writing on Walmart’s purchase of a dominant 77 per cent stake in Flipkart, touted for long as India’s answer to Amazon, is focused on its size. At $16 billion, of which $14 billion goes to buy up the stakes of investors such as SoftBank from Japan and Naspers from South Africa, it is reportedly the biggest acquisition in the global e-commerce area, and way larger than $3.3 billion that Walmart paid for US web retailer Jet.com in a deal considered the largest purchase of a US e-commerce startup. With some existing shareholders exiting, Walmart now shares ownership…

Jeff Bezos could be Wrong C.P. Chandrasekhar

Amazon founder and Chief Executive, Jeff Bezos, has given America’s ailing newspaper industry cause for cheer. In a move that still baffles most market watchers, Bezos as Bezos, and not through Amazon, has bought The Washington Post for $250 million, or 17 times its earnings before interest, taxes, depreciation and amortization (EBITDA) according to market estimates. That kind of premium makes little sense even for a profitable venture, which The Post is not. The newspaper division of The Washington Post Co., which notched up losses of $21 million in 2010 and $54 million in 2012, has reportedly already lost $49…