Walmart and Japanese e-commerce giant Rakuten eyes tov take on Amazon by making an alliance for the Kobo e-reader. As a result of this deal the US company becomes the exclusive mass retailer of Kobo e-readers. Walmart and Kobo apps will be co-branded for ebook and audiobook content, which will be available through Walmart's website. Users will also have the facility to buy digital book cards on Walmart stores.
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Japanese Rakuten bought Canadian company Kobo in 2011 and released its e-readers in Japan. The partnership with Walmart will definitely give a tough time to Amazon in US market which has limited retail presence for the Kindle. No doubt, Amazon dominates the ebook market after vanquishing Barnes & Noble's Nook but this alliance will definitely give them a hard challenge.
This deal also seems a part of Rakuten efforts to place Kobo e-readers in major bookstore chains around the world. The physical retail presence is an additional advantage for Kobo in this deal.