People on this side of the world were gearing up for the “Amazon of the Middle East” to be taken over by the original Amazon.com. Well, it seems talks for the deal have fizzled out. The e-commerce giant has finally ended talks to acquire Dubai-based Souq.com after disagreeing on prices, according to Bloomberg, which has cited an unnamed source.
Amazon, the US giant that made its name in online retail, was rumoured to have entered talks last year to buy Souq.com for a whopping $1 billion (Dh3.675 billion). The Middle East portal sells more than 1.5 million products online to customers in countries including the UAE, Egypt and Saudi Arabia. The e-commerce business is said to be looking at local buyers now, with the likes of Majid Al Futtaim (MAF) said to be involved.
According to Standard Chartered Bank, which is also an investor in Souq.com, the company is the highest valued internet business in the Middle East after its $275-million funding in February of last year.
There’s been no comment yet from MAF, Souq or Amazon.