Wal-Mart Stores Inc. agreed to buy e-commerce startup Jet.com Inc. for about $3 billion in cash, giving the world’s largest retailer the resources for a stronger shopping website to compete with Amazon.com Inc., the online market leader. Bloomberg's Jeffrey McCracken reports on "Bloomberg ‹GO›" August 8, 2016.
"If Jet.com was called Yellow.Online instead, do you think it would have sold to Walmart for $3 Billion?"--Andrew Rosener via DomainInvesting.com.
Jet.com: The $3B Hair Plugs - WARNING: Professor Galloway uses profanity
Who are the winners and losers in Walmart's (walmart.com) acquisition of Jet.com? Published August 9, 2016, by L2inc.com. Scott Galloway is a NYU Stern Marketing Professor.
Transcript via YouTube:
0:00 yeah
0:01 most powerful instinct of survival in a close second is propagation will mate
0:09 with younger women because the more fertile we want to mate with young women
0:12 because they're more fertile and women want to mate with men who appear to be
0:16 the strongest such as their kids their offspring have a greater chance of
0:20 survival so guys like me will spend a lot of money on glasses and a ridiculous
0:25 amount of money on a shirt with a collar such a 51-year old professor can look 50
0:29 and seven-eighths again what we had yesterday was the ultimate three billion
0:34 dollar Botox shot in the form of walmart acquiring jetdotcom three billion
0:41 dollars this was always about a sale this company never made any sense is a
0:45 distinct standalone company it started as a membership model and pivot is that
0:49 was not working and then began spending 25 million dollars a month on
0:53 advertising when you're a startup and you start spending tens of millions of
0:57 dollars a month on branding that is latin for this company makes no f__ing
1:02 sense and this one never did as a standalone entity the firm has dynamic
1:06 pricing which is a technology asset that claims to score millions of algorithms
1:12 in order to optimize warehousing and shipping to maximize margins there are
1:17 some big winners and losers here the first big winner is obviously jetdotcom's
1:22 investors and mr. lure investors were likely noxious every time they left the
1:26 board meeting seeing the amount of money this firm was burning through jet com
1:30 was the 50 cent of e-commerce get rich or die trying' one was bound to happen
1:35 soon however walmart blinked first and executed what will go down is the most
1:40 expensive aqui-hire in history
1:43 it's not about the revenues walmart doesn't care much about the $MONEY
1:46 billion dollars in incremental e-commerce revenue to add to their 15
1:50 billion it's about mr. Lore and his team Mr. Lawrence a big winner adds to his
1:55 pocket reportedly 750 million dollars and will now have deeper pockets to
2:00 plant traffic with some big losers as well specifically walmart ecommerce team
2:05 walmart management said effectively as my dad did to his third wife IE my mom
2:10 I've outgrown you and
2:12 moving in with a much younger flight attendant I met on the pan am flight to
2:15 Puerto Vallarta she makes me feel young again
2:18 dust off your resumes walmart ecommerce employees this is walmart saying no it's
2:23 not about me it's about you
2:25 this is yet another blow to the advertising industrial complex will miss
2:28 the 25 million dollars plus jet com was spewing into the echo system trying to
2:33 build a brand I think walmart marketing people are much more discipline at this
2:37 also a huge win probably the biggest win for jet com's banker who did a masterful
2:43 job convincing walmart management there was another potential buyer here there
2:47 wasn't there has always been just one and only one exit or buyer only two
2:53 firms have the balance sheet to pull this off the other being amazon and the
2:57 Seattle firm was likely sick of giving mr. Lore money to hang out for three
3:01 years and then go compete with them so Walmart gets wrinkles to disappear from
3:06 their analog forehead for about six months and jet dot com founders and
3:10 investors get a huge return consumers will also benefit as Walmart will pursue
3:15 youth at the expense of their shareholders who could reasonably ask
3:19 okay but three billion dollars for a Corvette and hair transplant
3:25 really
3:29 yeah
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