Budget 2019 Expectations: Keep Budget projections realistic, reflecting state of economy, say economists. Star India is staring at an ad revenue loss of c. INR100cr, which may more than double if India vs Pakistan match gets hit. Denial rate for initial H-1B visa applications spikes over five-fold to 32% just in the first quarter of the current fiscal. WeWork is in talks to buy c. 70% of WeWork India in a $1.9bn deal.
Moving on to the top Business news today:
Flipkart burned c. $1bn since its acquisition by Walmart, as per regulatory filings. WeWork is in talks to buy c. 70% of WeWork India in a $1.9bn deal.
Burn the Cash: US retail giant Walmart-owned Indian e-commerce company Flipkart has burned c. $1bn since its acquisition by the former, as per the regulatory filings disclosed by Walmart last week.
As per the filings, Flipkart had $1.2bn in cash and cash equivalents on its books as of April 30, down from the $2.2bn it held in August 2018 when the US retail giant invested $16bn for a 77% stake.
Fending Off the Rival: The aggressive cash burn is probably an attempt to keep away rivals such as Amazon.
In Other News…: WeWork is in talks to buy around 70% of WeWork India at a valuation of about $2.75bn as it filed for an initial public offering in the United States in April.
The cash-and-stock deal worth c. $1.9bn could close as early as August as per reports.
Zoom Out: WeWork India is a franchisee controlled by real estate tycoon Jitu Virwani and his son Karan. They control Bengaluru-based developer Embassy Group, while Karan Virwani is the CEO of WeWork India.
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