Amazon set to buy Souq?

There are reports that Amazon is set to buy one of the Middle East’s largest online retailers, Souq.

Last week, Reuters published a report that said that well placed sourced had told the news agency that Amazon had agreed to the deal in principle. The media has been in touch with both Amazon and Souq and neither have confirmed or denied the reports. Neither company has commented on the supposed plans either.

When it went through its latest funding round last year, investors valued Souq at around US$1bn. A report in other media suggested that Amazon is set to pay considerably less than that for the Middle Eastern company.

Souq was reportedly valued at around $1bn when it undertook its latest funding round last year, but a report on TechCrunch yesterday suggested that Amazon had paid considerably less than that: the tech blog reports that the figure is closer to $650 million.

There have been rumours around an Amazon / Souq deal for some time. As with so many Amazon rumours, some are true while others are further from the mark. However, it would be a sensible move on the part of Amazon as it is buying Souq’s customers and infrastructure in the Middle East as well as the brand. As with so many rumours, Amazon never comments on these things until the ink is dry on the paper, and sometimes a while after that. Reuters is a high standing news source so we can only believe what we are told: that Amazon has its eyes on an acquisition led charge into the Middle East… 
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