Amazon.co.uk and Walmart.com will pay $1.2bn each to buy the online retail giant’s popular online retailer, The Wall Street Journal reported on Friday.
Walmart will be buying the US retailer’s flagship online store, which has been in operation since 2006, as well as its e-commerce business and its online video streaming service.
Amazon’s acquisition comes as Walmart grapples with a number of key challenges including a $3.4bn tax bill that has caused a drop in sales in the first half of this year.
The company has been under pressure to find a buyer as the tax bill for the current year has surpassed $100bn.
The company’s shares fell about 8.5% to $72.69 on the New York Stock Exchange on Friday, before recovering somewhat.
Amazon will buy the company’s online retailer for $1,100 a share in cash and cash equivalents, according to a person familiar with the matter.
Walmarts stock price has dropped more than 35% since the end of March.
Amazon.com said it will pay a $500m tax bill on the sale.
The tax bill has caused Walmart to cut its annual dividend by nearly 20%.
The company said it has also reduced the number of employees it employs, as it looks to cut costs in an effort to focus on growth and attract more customers.
Walton-based Amazon said it had a $5bn cash reserve as of March 31.