However, the news came when SoftBank has not yet chose to part ways with Flipkart stakes due to tax obligations and is hopeful of a further increase in Flipkart valuation following the United States dollars 16 billion deal with Walmart.
"Last night, (they) reached a final agreement and it was decided that Flipkart will be sold to America's Walmart", Son had stated in Tokyo, according to an AFP report.
According to sources, the revenue department will write to Flipkart seeking the share purchase agreement that the company had entered into with Walmart to calculate the tax liability. Flipkart just lost their valuable cross border trade partnership with eBay and are unlikely to do much while they're focused on being acquired by Walmart.
Softbank backed Snapdeal in the hope that the e-tailer would challenge Flipkart's dominance in the e-commerce space.
On 9 May, hours before Walmart was scheduled to announce the Flipkart acquisition, SoftBank chief executive Masayoshi Son told an investor call on his company's earnings that Walmart had agreed to buy a controlling stake in the Indian e-commerce company.
The tax department had last week written to Walmart saying that the USA company can seek guidance about the tax liability under Section 195 (2) of the I-T Act.
The tax department had last week written to Bentonville-Arkansas based Walmart saying that the USA company can seek guidance about the tax liability under Section 195 (2) of the I-T Act. Walmart founder Sam Walton's grandson, Steuart Walton, is reportedly likely to join Flipkart's board of directors.
On May 12, Tamil Nadu Vanigar Sangankalin Peramaippu, a federation of traders in Tamil Nadu, warned the government of massive country-wide protests if the deal between Walmart-Flipkart was approved. "In the end Walmart will call the shots in Flipkart", said a top official of a foreign consulting firm.
"Although we expect that Flipkart will continue to generate losses for the next few years, our credit-positive view is based on India's compelling features, including its 1.2 billion residents and an economy that generates more than 7 per cent annual GDP growth", Moody's added.
In addition, Walmart will have a veto right "over specified decisions relating to Flipkart's business and activities", the SEC filing said, without sharing more details.
This is a pain for eBay as it reduces their export to sellers that list on the site, rather than as anticipated from Flipkart's 100,000-plus sellers, who under the Flipkart Global program would have been enabled to sell across India and to over 171 million active customers of eBay globally. Walmart are still trying to put a deal together which will take the best part of a year to complete before they can actually do anything.