Wal-Mart is in talks to purchase Jet.com for 'as much as $3 billion'
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Citing sources familiar with the retailer's plans, The Journal reports that the details of the deal haven't been revealed, but the purchase price could be "as much as $3 billion."
For Wal-Mart, the purchase would fit into the retailer's larger strategy and goal to bolster its e-commerce position.
Founded by Marc Lore and Nate Faust, Jet.com launched in 2015 and positioned itself as an Amazon competitor.
Jet has raised more than $500 million from investors to date, and has joined the growing club of startups that are considered "unicorns" with valuations over $1 billion.
Initially, the online retailer opted for a subscription service as a business model, similar to Amazon Prime, and promised customers the "lowest price on everything," with prices 10-15% lower than its competitors. All products were around 8% cheaper on the site, but additional discounts could be unlocked by ordering multiple items to be shipped all at once. Jet claimed these savings were made possible due to the combined shipping strategy and its strict no-returns policy and barring transactions made with a debit card.
Jet shortly pivoted away from its subscription model in October 2015, however, opening up the site to non-members in the hopes of reaching more customers.
You can read the full scoop over at The Wall Street Journal.