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Report: Amazon Resumes $650 Million Takeover Talks for Souq.com

Amazon resumed negotiations with the online retailer in recent weeks after they stalled in January when the two companies couldn’t agree on a price.
Amazon boxes | Source: Shutterstock
By
  • Bloomberg

DUBAI, United Arab Emirates — Amazon.com Inc. restarted talks to acquire Dubai-based Souq.com for as much as $650 million after walking away from the deal earlier this year, people familiar with the matter said.

The US e-commerce giant resumed negotiations with the online retailer in recent weeks after they stalled in January when the two companies couldn’t agree on a price, the people said, asking not to be identified as the information is private.

Amazon is the only company involved in talks after other bidders, including mall-operator Majid Al Futtaim pulled out, the people said. A deal hasn’t been agreed and talks may fail again, they said.

Souq.com was valued at $1 billion in its last funding round, people with knowledge of the matter said in April 2015. The retailer raised $275 million, making it the most valuable Internet company in the Middle East, according to Standard Chartered Plc, which has invested in the company.

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Souq.com’s existing investors include Tiger Global Management and South Africa’s Naspers Ltd. The company hired Goldman Sachs Group Inc. to find buyers for a stake last year, people said at the time.

A representative from Souq.com didn’t respond to requests to comment. An Amazon spokesman said the company doesn’t comment on rumors or speculation.

By Matthew Martin and Dinesh Nair, with assistance from Nate Lanxon; editors: Dale Crofts and Stefania Bianchi.

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