SoftBank CEO Masayoshi Son said he respected the decision of Snapdeal founders to call off merger talks with Flipkart and the Japanese firm is now pursuing separate discussions with the largest Indian e-tailer Flipkart. SoftBank, which announced its June quarter earnings today, has been reported to be in talks with Snapdeal’s rival and India’s largest e-commerce platform Flipkart for investing up to $2 billion.
“We respect the decision of Snapdeal founders and we are engaged with Flipkart,” Son said after the results were announced. Son, however, did not specify the details of the discussions with Flipkart. SoftBank holds close to 35 percent stake in Snapdeal. Over the past few months, it had mediated the sale of the company to the larger rival.
However, last week, the talks fell apart after Snapdeal announced that it had decided to pursue an independent path and was terminating all strategic discussions. Sources had said that after the Snapdeal transaction did not work out, SoftBank is now looking at investing upto $2 billion in Flipkart through its SoftBank Vision Fund. ALSO READ: Snapdeal is slashing 80% of its workforce after calling off Flipkart deal: Report
For the June quarter, SoftBank posted over 50 percent rise in operating profit on the back of inclusion of the Vision Fund as a new segment. The SoftBank Vision Fund, which is billed to be the world’s largest private equity fund, booked a valuation gain this quarter. Net sales were up 2.8 percent year-on-year to 2,186.1 billion Yen, while net income dipped by 98 percent to 5.5 billion Yen in the June 2017 quarter.