Jithin91
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Online ticketing platform BookMyShow may be valued at $500-700 million if the proposed deal with Flipkart goes through
Flipkart Ltd is in talks to buy a large minority stake in ticketing platform BookMyShow, as India’s most valuable internet firm seeks to improve customer stickiness and gain a higher share of spending by urban Indians, according to three people familiar with the matter.
Flipkart had initially expressed an intent to buy BookMyShow, one of the three people said. But the two other people said a stake sale is more likely than an outright sale. Reliance Industries-owned Network18, which is the single largest shareholder in BookMyShow with a 39% stake, is bullish on the firm, these two people said.
Flipkart is seeking a deal and business partnership with BookMyShow partly to get a higher share of the spending by upper-middle-class and rich Indians. Compared with rival Amazon India’s Prime subscription service, Flipkart lacks an equivalent differentiator. By striking partnerships with the likes of BookMyShow, Flipkart wants to offer a range of services to keep customers coming back to its platform, said the people cited earlier. It also plans to launch groceries this year in order to push repeat purchases by customers.
Via Livemint
Flipkart Ltd is in talks to buy a large minority stake in ticketing platform BookMyShow, as India’s most valuable internet firm seeks to improve customer stickiness and gain a higher share of spending by urban Indians, according to three people familiar with the matter.
Flipkart had initially expressed an intent to buy BookMyShow, one of the three people said. But the two other people said a stake sale is more likely than an outright sale. Reliance Industries-owned Network18, which is the single largest shareholder in BookMyShow with a 39% stake, is bullish on the firm, these two people said.
Flipkart is seeking a deal and business partnership with BookMyShow partly to get a higher share of the spending by upper-middle-class and rich Indians. Compared with rival Amazon India’s Prime subscription service, Flipkart lacks an equivalent differentiator. By striking partnerships with the likes of BookMyShow, Flipkart wants to offer a range of services to keep customers coming back to its platform, said the people cited earlier. It also plans to launch groceries this year in order to push repeat purchases by customers.
Via Livemint
