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I think it's smart for Walmart to diversify it's business into something other than retail. They need to grow revenue for shareholders, I don't think there's a

I think it's smart for Walmart to diversify it's business into something other than retail. They need to grow revenue for shareholders, I don't think there's any more large-growth opportunities for Walmart in that sector. I do think this move is rather unoriginal, and is a 'me too' effort vs CVS & Aetna. Walmart is the #3 largest Pharmacy in the US, so there are potential savings and efficiencies to be had with a health insurance merger.

fencepost 9y ago
I do think this move is rather unoriginal, and is a 'me too' effort vs CVS & Aetna. There's probably a little CVS/Aetna in their decision making, but I'm pretty confident this is much more an "Oh crap!" response to the Amazon / Berkshire Hathaway / Chase Healthcare venture announced earlier this year. Walmart sees Amazon already looking at its core markets: cheap Chinese crap, groceries, pharmacy. Its choices are to compete or to watch Amazon do to it what it did to downtown shops over the last 40 years.
- brownbat 9y ago
  It feels like everything Walmart does is in part a response to Bezos. And given Buffett's exit last year, maybe him too. It's not a totally crazy response, though. Even considering Berkshire and Amazon haven't announced any real details and could basically just be self-insuring their workers through a nonprofit they fund to reduce administrative costs and taxes. But it's like corporate Go. You so much as signal interest in a corner and the other side has to reposition itself so it could defend the possibility.