Amazon Buys Souq
Amazon buys Souq have started sharing same blood and DNA
They have bet that the e-commerce of middle East is going to take off. The world’s biggest Emaar Malls PJSC a shopping center had bid for $800 million. And the bid is beaten out. They did not disclose the deals or the comments for souq.com.amazon and souq.com.
This news was announced by amazon stating “we’re excited to welcome souq to the amazon family.”
In overseas expansion Amazon has stepped forward.
The company is getting a great attention from the Flip kart online services Pvt and Alibaba Groups Holding Ltd. They have promised to spend $5 billion in coming years.
Middle east is still lagging behind when it comes for e-commerce. But in online shopping countries like Bahrain, Qatar and United Arab Emirates have made it a preferable mode of shopping with the use of mobile phones and laptops.
Amazon always looks for the growth, as it is the key factor for any mature market. Through Souq.com Amazon gets an average of 23 million online visitors in each month.
Souq sells more than 400,000 products. Souq.com is known as the Amazon of the Middle Eastern countries.
Souq was first founded in 2005 and later own by Yahoo.
The real value of souq is $1 Billion today. In February 2016 the retailer secured an amount of $275 million from its investors.
In addition to others this is Amazon’s one of the largest acquisition in recent years. The deal started last year but after a long negotiation this year Amazon has finally agreed for the deal.
Finally Amazon fixed a deal of $650 million for the Online retailer Souq. Therefore now Amazon and souq will have the same blood flowing in them. Amazon and Souq is based on motivation, innovation and long term thinking.
The deal will probably close in the end of this year.
Image & Content Source : khaleej Times