Social media giant Facebook is officially in plans to make multi-billion dollar investment by acquiring a stake in Indian telecom Czar Reliance Jio. Mark Zuckerberg backed social media conglomerate is in later stages to ink a preliminary deal to purchase a 10 percent stake in Mukesh Ambani’s Jio.
The report expressed that the discussions among Facebook and Reliance have been ended because of temporary travel restrictions across the globe taking into account the coronavirus episode. The arrangement will help Facebook extend its span in the Indian Digital Market. Jio, the telecom subsidiary of Reliance Industries (RIL), is available in various sections including portable telecom, home broadband, and even online business.
Reliance Jio is one of the leading telecom players in India with holding a strong subscriber base of 370 million in India. Market Experts and Analysts at Bernstein have currently valued the organization at over $60 billion.
Reliance Jio began business activities in September 2016. The telecom organization began a price war in the Indian telecom part by offering 4G information at modest rates and voice calls for nothing. Indeed, even right now the AGR issues have the telecom part anxious, Jio is by all accounts set in a decent position.
Then, Reliance Industries has been hoping to turn into a net-debt zero organization. Reliance Jio has just banded together with Microsoft to offer distributed computing administrations to organizations. In the past, Google has likewise also been in negotiations to pick up a stake in Reliance Jio.
Reliance Jio currently holds a wide array of services including music streaming service JioSaavn, on-demand live television service JioTV and payments service JioPay.
In the Begining of this year, Reliance Industries announced new venture JioMart, a joint venture between Reliance Jio and Reliance Retail, the nation’s largest retail chain, to soft-launch an e-commerce business.
In the past few quarters, Facebook had been consistently lagging behind its rivals and witnessing cut-throat competition from ByteDance’s backed TikTok in India, and now has started to take a small stake in local startups. The previous year, the Social media Major Facebook made an investment in social commerce Meesho; and the previous month, it bought a stake in ed-tech startup Unacademy.
Under its arrangement to turn into a net-debt zero organization, a year ago, Reliance Industries declared designs to reconstitute Jio into a different organization – an umbrella body for every single advanced business under the combination – and show it available. Under this plan, RIL will mix Rs 1.08 lakh crore in Jio through a rights issue. The new element will likewise gain Rs 65,000 crore price held by RIL in Jio.