Retail and technology superpower Amazon.com, Inc. (NASDAQ:AMZN) may soon be adding Dubai to its ever-growing list of international conquests.
According to a Bloomberg report, the world’s largest e-tailer is considering taking a stake in Dubai’s largest e-commerce company:
Amazon.com Inc. is weighing a bid for a stake in Dubai-based online retailer Souq.com FZ as the e-commerce giant seeks to expand in the Middle East, according to people with knowledge of the matter.
The stake won’t come cheaply, however, and Amazon will face plenty of competition for the potentially lucrative piece of Souq.com:
The stake, representing at least 30 percent of the company, is also drawing interest from private equity firms and regional, family-owned companies seeking to expand into web sales, the people said, asking not to be identified as the information is private. Souq.com’s advisers reached out to a large number of potential bidders for the holding, which may value the company at least $1.2 billion, the people said. No final decisions have been made, and the company has not agreed to a deal with any of the parties, the people said.
Souq.com, which has been described as the “Amazon of the Middle East,” reportedly hired Goldman Sachs a couple months ago to help it find an equity partner. The site currently attracts more than 24 million shoppers per month, and online shopping in the Middle East is still in the very early innings.
Amazon shares fell $9.24 (-1.18%) to $776.17 amid a wide market pullback in Wednesday afternoon trading. Year-to-date, AMZN has gained 14.7%.