The acquisition would give Amazon a valuable foothold in the Middle East
Bloomberg reports that Amazon may seek to acquire all of the site, which initially set out to sell a 30% stake, though no final agreement has yet been reached and the talks could end up faltering.
Neither company responded to Bloomberg’s request for comment, and the negotiations have been carried out in private.
Bloomberg’s sources, who remain anonymous, also said the company’s current investors — Tiger Global Management and Naspers Ltd. — were considering selling off their stakes, as well.
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According to the company’s website, Souq.com sells more than 1.5 million products to online customers in Egypt, Saudi Arabia and the United Arab Emirates, and has secured some $275 million in investment since February.
Amazon.com is currently the largest online retailer in the world, with localized storefronts in Asia, Europe, North America, Oceania and South America. If finalized, acquiring Souq.com could give the company a new geographic grip on the fast-growing Middle Eastern market.