According to the company’s quarterly report filed with the US Securities and Exchange (SEC) Ecommerce company eBay Inc has secured a 5.4% ownership in Flipkart,.
This follows the sale of their eBay India business to Flipkart for $211 million and a $514 million cash investment earlier this year. The sale of eBay India to Flipkart also resulted in a gain of $167 million for eBay Inc, the filing also stated.
Company’s quarterly report says “During the third quarter of 2017, we received a 5.44% ownership interest in Flipkart in exchange for our eBay India business and a $500 million cash investment, resulting in a cost method investment of $725 million. The gain on disposal of our eBay India business of $167 million was recorded in interest and other, net on our consolidated statement of income”.
Flipkart completed the merger with eBay India’s operations in August, after a deal was announced in April when the Flipkart group raised $1.4 billion from global technology major’s eBay, Tencent and Microsoft. Flipkart’s merger with eBay India will not only provide Indian sellers with the opportunity to sell globally, but the Indian ecommerce major is also looking at using eBay India as a platform to sell refurbished goods.
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