Snapdeal employees stand to gain
Sale of a company often leaves employees high and...
Sale of a company often leaves employees high and dry, but not in the case of Snapdeal that may offer a Rs 193 crore bonanza to its staff
According to sources, the 1,200-odd employees left at Snapdeal will get from the co-founders half the $60 million payout SoftBank will pay Bahl and Bansal for their 6.5 per cent stake in Snapdeal. The co-founders, along with other directors including early investors Kalaari Capital and Nexus Venture Partners, agreed last week to SoftBank’s proposal to sell Snapdeal to Tiger Global-backed Flipkart. Interestingly, the deal-linked payment would be extended to employees who do not own ESOPs to reward those staying on. Not only the present employees, some who have left the firm but hold Esops or were asked to leave would also be compensated. (medium.com)
Who funded them?
SoftBank Vision Fund, the $100-billion fund floated by SoftBank chief Masayoshi Son to invest in technology companies, is in talks to invest $1.5-$2 billion in India's largest ecommerce firm Flipkart, reports today said, Son continues to look for investment opportunities in Indian ecommerce sector after the proposed merger between Snapdeal and Flipkart was been called off. Reports say that negotiations between the two entities have begun, though neither entity was willing to confirm it. ''SoftBank continues to look for investment opportunities in India,'' the Japanese investor said in a bland email reply to media queries. (domain-b.com)
Snapdeal on Monday called off the $950 million-takeover (over Rs 6,000 crore) by Flipkart, apparently over differences in valuation and terms of what could possibly have been the largest deal in the Indian e-commerce space. Discussions to acquire the beleagured Snapdeal by Flipkart were initiated in March but contours of the deal could not reach a finality even after several rounds. "Snapdeal has been exploring strategic options over the last several months. The company has now decided to pursue an independent path and is terminating all strategic discussions as a result," a Snapdeal spokesperson said in a statement, without naming Flipkart. (dailypioneer.com)