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The rumor started last week

And now it’s a done deal.

Walmart (WMT) bought Jet.com for $3.3 billion today

Walmart will pay $3 billion in cash

and $300 million in stock

Fun Fact: Jet.com’s CEO Marc Lore sold his previous company to Amazon (AMZN)

He sold Diapers.com in 2010 for $550 million

Our parents would buy diapers from Diapers.com when we were babies.

He co-founded Jet.com in 2014.

They used to charge a $50 membership fee

After a 90 day free trial

They eliminated the $50 membership fee in October 2015

They were attractive to Walmart for several reasons

They are adding 400,000 customers a month

And they have an algorithm which lowers the prices on their site a few different ways

1. When customers buy more items from the same distribution center

2. When they pay with a debit card instead of a credit card

3. When the customer opts out of the right to return the product

Both Jet.com and Walmart tout low prices

So they have the same philosophy

Jet.com will help Walmart improve its e-commerce business

by lowering prices

and by adding customers

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