Why Snapdeal has Reject the offer of Merger with Flipkart? | Technotok
Last week, after Freecharge was acquired by Axis Bank, co-founder Kunal Bahl wrote an emotional letter to all employees, asking them to charge up and brace for turbulent times.
At the same time, he also expressed confidence in the eCommerce sector and promised them a major change in the coming days.
This letter indicated to us that maybe the merger between Flipkart-Snapdeal is taking time, hence this emotional letter. But no, now it is clear that the reason was something else.
Besides, starting late last week, rumours started floating that Softbank, the majority stakeholder in Snapdeal, has threatened to walk-off from the merger if the minority shareholders don’t support the merger. Some shareholders were objecting to the payout to be received by the founders, post-merger.
Earlier, rumours also came in that Snapdeal wants Infibeam as a possible partner for the merger, rather than Flipkart, due to strict terms and conditions being put forth by them.
Do you think this was a good decision taken by Snapdeal? Will they be able to create a turnaround story? Do let us know your views by commenting right here!
