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.
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.
