Rumors had been spreading around for the past few weeks that Amazon was thinking about acquiring Souq.com, one of the largest online marketplaces in the Middle East. Amazon hasn’t officially had a presence in the region so acquiring the biggest player in the region enables it to hit the ground running. Amazon today confirmed that it has indeed acquired Souq.com.
Just last week, it was reported that Amazon had bid as much as $650 million for Souq. Both companies were said to have arrived at a decision on the price following months of intense negotiations in which price remained the bone of contention.
Souq has often been referred to as the Amazon of the Middle East primarily because throughout its years of service in the region it hasn’t had to compete with Amazon. The leading online retailer says that this deal makes sense as both companies “share the same DNA” and that they will now work hard to provide “the best possible service” to customers in the Middle East.
Today’s announcement has made the acquisition official but both companies have remained quiet about the terms of the deal. It’s not clear how much Amazon has paid for Souq but previous reports suggest that it may have paid $650 million. Souq’s founders were reportedly looking for $1 billion but had to bring down the price because no one was willing to pick it up for that much.
Amazon hasn’t confirmed as yet if it will eventually rebrand Souq to the Amazon brand.
Filed in . Read more about Amazon. Source: businesswire