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by wpietri 2961 days ago
And I'd add that a high price hurts Walmart more than Amazon. Amazon's market cap is 3x Walmart's. Amazon has $31 billion in cash and short-term investments; Walmart has about $7 billion. On top of this, presumably Walmart will be investing heavily in expansion.

I think Walmart's stinginess is also an important point here. At this price, plus the additional money they put in, a good ROI gets harder. Bezos has never really cared about short-term ROI, but I wonder if Walmart will be inclined to be impatient or under-invest later because of the high price now.
2 comments
skinnymuch 2960 days ago
Is anyone besides Google contributing. I think I read Google is giving $3B so that’s a decent chunk.

I’m guessing they wanted Softbank out for control in general and since Softbank loves to control, otherwise they could’ve saved another $4B and let Softbank keep 20% control.

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ENOTTY 2960 days ago
"Google-parent Alphabet Inc. is likely to participate in the investment with Walmart, said one of the people"

Walmart is getting help.

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