Wal-Mart Acquires Kosmix

 In Acquisition/Investment, News

WalmartLabs-SAPRIL 18, 2011 • Wal-Mart Stores Inc. acquired Mountain View, Calif.-based social media company Kosmix for an undisclosed sum. Kosmix’s founders and staff will now operate as @WalmartLabs, a new group at the retailer that will create technologies and businesses to support shopping via smartphones and online.

Impact: We can see how Wal-Mart might emulate social coupon sites like Groupon and Living Social to push special offers to gamers and other customers. Given Wal-Mart’s market share and economies of scale, it would be very difficult for competitors to match the discounts the retailer could offer in such a scenario. All good news for tech-savvy consumers, but potentially another cut to the margins of product suppliers. 

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