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The Associated Press reports that Walmart has completed its $3.3 billion acquisition of Jet, the year-old online retailer that it hopes will be able to jump-start its own e-commerce business and deliver on its ambition of catching up with Amazon.

According to the story, "The hefty price tag shows how heavily Wal-Mart is willing to invest as it tries to increase online sales that totaled $13.7 billion last year — still just a fraction of the company’s total annual revenue. Wal-Mart has said it will incorporate some of Jet.com’s 'smart technology' that lowers prices in real times by looking for ways to cut costs. Wal-Mart and Jet.com will operate as separate brands, though."

Marc Lore, who founded Quidsi and diapers.com and sold them to Amazon before launching Jet and selling it to Walmart, will stay with the company, running the e-commerce business and report directly to Walmart CEO Doug McMillon.
KC's View:
That's a lot of money to spend on a business that hasn't yet proven itself, and that almost certainly has a culture that will not fit in naturally with Walmart's.

The question is whether Lore will be given enough running room to really remake Walmart's online business, and if he can do so in a way that will compete with Amazon effectively. I still think that the odds are pretty good that before long they'll move all the online business operations from Silicon Valley to Arkansas ... that they'll integrate Jet into Walmart's online business rather than keeping them separate, and that Lore stays as long as his contract is for, and not a day longer.