Walmart's India (Flipkart) Gambit: Growth Rebirth or Costly Facelift?

Aswath Damodaran analyzes Walmart's $16 billion acquisition of a 77% stake in Flipkart, arguing that it is primarily a defensive move against Amazon rather than a value-creating transaction. He examines both companies' life cycle positions—Flipkart as a money-losing growth engine and Walmart as a mature, declining retailer—and concludes the deal is unlikely to generate adequate returns for Walmart shareholders despite the premium valuation.