Online powerhouse eBay Inc. (EBAY) stands to make $1.1 billion from selling its holdings in Indian e-commerce giant Flipkart, thanks to the Walmart-Flipkart deal that was officially announced on Wednesday morning.
"Following the close of the transaction, we also will be ending our current strategic relationship with Flipkart, which includes unwinding our commercial agreements with Flipkart and terminating Flipkart's license to use the eBay.in brand," eBay said in a statement. The company's shares were up 1% at $38.48 shortly before noon ET.
The company stated that it will be relaunching eBay India to focus on cross-border trade initially. "We believe there is huge growth potential for e-commerce in India and significant opportunity for multiple players to succeed in India's diverse, domestic market," eBay said.