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Julie Hyman details headlines from Monday’s affairs, including: Walmart’s Flipkart group secures $ 37.6 billion valuation ahead of its U.S. IPO, with Elon Musk testifying in Delaware court about the ‘Acquisition of SolarCity by Tesla for $ 2.5 billion and Nordstrom buying a minority stake in 4 Asos brands in its desire to attract young consumers.
Video transcript
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JULIE HYMAN: Elon Musk could testify today in a lawsuit examining his combination of Tesla and SolarCity in 2016. Musk was then chairman of both companies, and plaintiffs, including pension funds, say the deal says. $ 2.1 billion was designed to bail out the unprofitable solar business. The rest of Tesla’s board of directors agreed to pay $ 60 million last year as part of a settlement related to the deal, despite denying any wrongdoing. By the way, this amount was paid by insurance.
A fundraising plot for Flipkart values the Indian e-commerce retailer at $ 37.6 billion. Primary owner Walmart, along with returning shareholder SoftBank, along with Tencent and the sovereign wealth funds, contributed a total of $ 3.6 billion in this latest round. Walmart bought the majority of the company in 2018, for $ 16 billion, and is working on an IPO that could take place next year.
In addition, Nordstrom bought a minority stake in four brands owned by ASOS, the British retailer. Nordstrom will sell Topshop, Topman, Miss Selfridge and HIIT on its website and in its 350 stores. ASOS bought these brands in March, following the collapse of Sir Philip Green’s retail conglomerate Arcadia last year. By the way, the financial terms between Nordstrom and ASOS were not disclosed.
But a latest move from Nordstrom, in particular, which has been interesting, in sort of branching out beyond its core business, buying things like Trunk Club along the way. Sozz, I know this is something you’ve observed, because we’ve seen Nordstrom, sort of branch out into different companies.
BRIAN SOZZI: Yeah, Julie, and Nordstrom is no stranger to acquisitions. In your opinion, in 2014 they bought Trunk Club. They have since renamed it Nordstrom Trunk Club. They were opposite, I would say, the trend towards subscription services, so they came out and did it.
In February 2011, they went out and bought a HauteLook. They have since shut down that brand and incorporated this flash sales business model into their Nordstrom Rack business. But all in all it’s hard to argue with the expense of a business, a department store trying to freshen up, trying to reach a younger audience, going to more fashionable products, it had to be. meaning to me.
Ultimately, we chat with Nordstrom CEO Eric Nordstrom later in the week. I’ll ask her all about it and report back to you, Julie.
JULIE HYMAN: It looks nice.
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