Mergers That Could Dethrone Amazon: eBay (EBAY) and Walmart (WMT)
Credit has to be given where it’s due. Wal-Mart Stores Inc (NYSE:WMT) has spent a ton of time and money to win back some of the business it has lost to online shopping giant Amazon. Not only is Walmart in the midst of deploying $2 billion worth of investment in its e-commerce presence, it also recently closed on the purchase of online-retailer Jet.com.
It’s working, too. Last quarter’s online revenue was up 63% year-over-year.
Try as it might though, neither Walmart nor Jet is a first-choice venue for internet shoppers. Amazon remains the go-to destination for most consumers looking to find something, or find nothing in particular.
It’s too bad, too, as Walmart (now that it sells third-party goods online) can probably offer the same diverse selection Amazon does. It’s just not a name people associate with internet shopping.
You know what e-commerce name does turn heads, though? eBay Inc (NASDAQ:EBAY). It just doesn’t have the breadth of depth of merchandise Amazon does. If the two could muster the guts to move further down the M&A scale — combining the eBay name and Walmart’s purchasing power — Amazon would have good reason to worry.