Microsoft to Sell 50.7M PhonePe Shares, Faces Amazon Cloud Challenge
Microsoft will divest its PhonePe stake by selling 50.7 million shares in an IPO valuing the firm at $9-10.5 billion, down from its $12 billion private valuation. Analysts predict Amazon’s custom cloud chips and e-commerce advantages could overtake Microsoft’s market value over the coming decade.
1. Microsoft PhonePe Stake Sale
Microsoft plans to exit its PhonePe investment by selling all 50.7 million shares in the IPO, with no new shares issued by the firm.
2. PhonePe IPO Valuation Change
PhonePe is seeking a valuation between $9 billion and $10.5 billion for its IPO, down from the $12 billion private valuation in 2023, implying a capital raise of roughly $900 million to $1.05 billion.
3. Cloud Competition Outlook
Analysts highlight Amazon’s advantage in custom cloud chips and its agentic commerce model as key factors that could allow Amazon to outpace Microsoft’s market valuation over the next ten years.