Speculations about a potential sale of Souq.com to Amazon.com Inc, the US e-commerce firm, has been confirmed and the deal has now been agreed.
Sources have not disclose the price of the deal, however it is estimated to be valued at $US one billion, in its last funding round, and it has been raised to $US 275 million from investors.
Souq is one of the best-known names in the Middle East’s online shopping market and one of the most recognised online brands. It houses variety of products such as consumer electronics, household items among many others in addition to expanding into books and groceries.
Amazon has been considering expanding into the Middle Eastern market under its own name. However, buying Souq provides it with high growth potential to expand in the Middle East through an existing strong customer base and the infrastructure to store and deliver products.