Global retail giant Wal-Mart Stores Inc said on Monday it would buy social media company Kosmix for an undisclosed sum, Reuters reported. The acquisition will help the world's largest retailer win over more tech-savvy shoppers.
Wal-Mart said Kosmix's founders and team will operate as part of a newly formed group called @WalmartLabs that will create technologies and businesses around shopping online or with smart phones, the report added.
"We are expanding our capabilities in today's rapidly growing social commerce environment," said Eduardo Castro-Wright, Walmart's vice chairman. "Social networking and mobile applications are increasingly becoming a part of our customers' day-to-day lives globally, influencing how they think about shopping."
Earlier on Monday, Wal-Mart's chief executive Mike Duke said in a statement that his top priority for this year was to turn around same-store sales at its U.S. discount chain.
Kosmix's founders, who sold their first company Junglee to Amazon.com Inc in 1998, will continue to be based in California's Silicon Valley.
Kosmix was founded in 2005 by Internet veterans Venky Harinarayan and Anand Rajaraman (in the picture). The company has funding from Time Warner Investments, Accel Partners, Lightspeed Venture Partners, and DAG Ventures, besides from private investors Jeff Bezos (Bezos Expeditions), Jon Miller, and Ed Zander.
Read our earlier interview with Anand Rajaraman - "We Are Not A Google Challenger:" Kosmix Founder.
(Inputs by Reuters).