London — Amazon.com’s shake-up of the retail landscape may not be over, according to one well-known technology analyst. The internet giant will acquire Target, Loup Venture co-founder Gene Munster wrote in a report highlighting eight predictions for the technology industry in 2018. Amazon made waves in retailing last year with its $13.7bn purchase of Whole Foods Market. "Target is the ideal offline partner for Amazon for two reasons: shared demographic and manageable, but comprehensive, store count," Munster wrote, noting both companies focus on mothers and families. "Getting the timing on this is difficult, but seeing the value of the combination is easy." Market-share numbers suggest a deal would be approved by regulators, and Wal-Mart Stores would still have a larger share than an Amazon-Target combination, Munster said. He estimated a take-out valuation of $41bn, or a 15% premium to Target’s current value.
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