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Walmart Is Buying Jetcom For $3B

Walmart Stores is buying Jet.com in a deal worth $3 billion dollars according to a source with direct knowledge of the deal, confirming reports that have been pouring in about the bid for Jet.com all week. According to our source the signatures for the deal were dry on Friday and will be announced as early as Monday morning — echoing what was reported in both Bloomberg and Recode.

The deal for Jet.com comes as big brand companies and retailers are trying to shore up their defenses against an all-out assault on their business from Amazon.com. From its launch in 2015 Jet.com set itself up to be an Amazon killer. The company was founded by Marc Lore, who sold his previous business, Quidsi, to Amazon for $545 million.

"We believe the acquisition of Jet accelerates our progress across [our] priorities," said Doug McMillon, president and CEO of Wal-Mart Stores. "Walmart.com will grow faster, the seamless shopping experience we're pursuing will happen quicker, and we'll enable the Jet brand to be even more successful in a shorter period of time. Our customers will win. It's another jolt of entrepreneurial spirit being injected into Walmart."

Jet.com competed against Amazon and other e-commerce sites by focusing on a low-price strategy. Products are typically priced 10% to 15% lower than those of Jet.com'spetitors, though that costs tens of millions of dollars a month in marketing. The company recently pivoted away from a $50-a-year subscription model in hopes of reaching more customers, which put even more pressure on its cost structure.