Walmart in Talks to Acquire or Invest in E-Commerce Upstart Jet.com

Executive Summary

• This morning, The Wall Street Journal broke the story that Walmart (WMT) is in talks to acquire e-retailer Jet.com for up to $3 billion. It is possible that the transaction could ultimately be a strategic investment.
• Jet officially launched one year ago, and reportedly reached a $1 billion annual revenue run rate and exceeded internal targets in July. The company has reportedly been seeking to raise $640 million at a $1.7 billion valuation.
• Jet would be a good fit for Walmart, which is increasingly focusing on its online business. Revenue growth in Walmart’s online business decelerated to 7% in the first quarter of 2016 from 12% in 2015.