WalMart Jets Into Amazon’s Flight Path

walmart jets into amazon's flight path

WalMart’s latest attempt to compete with Amazon for a share of the online retail market is a $3.3 billion deal for Jet.com, whose price-selection software the company believes can help make it competitive — even if it doesn’t send shoppers to WalMart.

Jet.com is the 16th company WalMart has added to its menagerie of online retailers in an attempt to unseat Amazon. The brick-and-mortar retailer’s online sales declined again in the first quarter, whereas Amazon is experiencing consistent growth, even if investors don’t seem to care about it. For the time being, WalMart said both companies will operate independently, although it will be attempting to integrate some of Jet.com’s more popular features into its searches.

“Over time, piece-by-piece, we will end up running a business that is simpler and not completely independent,” WalMart’s Chief Executive Doug McMillion said. “One of the things we really like [about Jet.com] is that the customer is even more in-charge of the price that they pay,” in part because they choose where to purchase an item from. That would difficult to accomplish if all links, however, led back to WalMart — so for the time being, independence is the watch-word.

That, of course, makes it difficult to evaluate whether this is actually a good deal for WalMart. As retail analyst Charlie O’Shea told Reuters’ Nandita Bose, even though Jet.com has added nearly 400,000 shoppers per month since it went live in 2015, the company is still vying for what will be, at best, the second most popular online retailer — which may sound like success to normal human beings, but doesn’t actually excite Wall Street.

 

 

Source

http://www.salon.com/2016/08/09/wal-mart-purchases-jet-com-in-yet-another-futile-attempt-to-topple-amazon/

Yahoo Sold. The Amount Was Once Much Higher.

yahoo-sold

Yahoo Has Been Sold

Earlier today, Yahoo announced that it will be selling what remains of its former Internet empire to Verizon for a little under $5 billion — quite a fall for a company that Wall Street once valued at $125 billion.

 Yahoo now joins AOL in Verizon’s menagerie of early Internet behemoths. According to Forbes’ Brian Solomon, the company hopes to leverage the platforms’ mobile content and advertising technology to better reach its 140 million customers — that is, by focusing on the very market both companies ignored for far too long.

If Yahoo’s CEO, Marissa Mayer, exits the company, she will receive approximately $57 million in severance pay — this despite the fact that many industry insiders believe she hastened the company’s demise through micromanagement and a propensity to make important decisions both too quickly and using the wrong criteria. Curiously, however, Mayer doesn’t seem to have her bags packed, as she wrote in a memo published on Tumblr: “I’m planning to stay. I love Yahoo, and I believe in all of you. It’s important to me to see Yahoo into its next chapter.”

 Verizon’s chairman and CEO, Lowell McAdam, said on Monday that “just over a year ago we acquired AOL to enhance our strategy of providing a cross-screen connection for consumers, creators and advertisers. The acquisition of Yahoo will put Verizon in a highly competitive position as a top global mobile media company, and help accelerate our revenue stream in digital advertising.”

This wasn’t the first time Yahoo was on the wrong end of a decision. It declined to buy Google way back in the day for about $1 million. Looking back of course, it’s easy to imagine that the executives were comfortable in their domination of the market and didn’t see Google as a threat or opportunity. How times change.

Source

http://www.salon.com/2016/07/25/verizon_purchases_yahoo_for_4_83_billion/