It looks like Walmart will be the new owner of the e-commerce site Jet.com.
Walmart and Jet.com have agreed to a deal worth “around $3 billion” and will make it official Monday, Recode’s Jason Del Ray reported Sunday afternoon, citing anonymous sources.
The deal, which was first reported by the Wall Street Journal last week, would be the largest US e-commerce company acquisition in history. Recode points out Zulily’s $2.4 billion sale to QVC was the previous record.
Jet.com’s cofounder and CEO Marc Lore is expected to lead Walmart’s entire online business following the acquisition. Lore, who owns about a quarter of Jet.com, could make as much as $750 million from the deal, on top of “incentive bonuses,” according to Recode.
The acquisition is expected to help boost Walmart’s online business, which has struggled to gain much share against the market leading Amazon. Walmart’s generated around $14 billion in e-commerce sales, a fraction of Amazon’s $99 billion in annual revenue.
The acquisition by Walmart, the largest retailer in the US, also marks the final chapter to Jet.com, the two-year old e-commerce site that raised over $500 million. Jet.com has often positioned itself as an Amazon competitor and is reported to have set a goal of becoming a company worth $40 billion within 5 years. The company was last valued at around $ 1 billion.