The Jio deal will help reduce RIL’s debt burden while for Facebook it gets a firm foothold in a fast-growing huge market.
Facebook has bought a 9.9% stake in Reliance Jio for $5.7 billion (Rs 43,574 crore), the telecom unit of Reliance Industries Ltd (RIL) in a deal that gives the social media giant a firm foothold in a fast-growing massive market and helps the Indian oil-to-telecom conglomerate to significantly cut debt.
This gives the social media giant a firm foothold in a fast-growing massive market and helps the Indian the oil-to-telecom conglomerate to significantly cut debt.
The company said, “This investment underscores our commitment to India and our excitement for the dramatic transformation that Jio has spurred in the country.”
Here’s what Facebook will gain with this stake buy in Reliance Jio:
- Facebook has now become Reliance Jio’s largest minority shareholder.
- With Jio’s 388 million customers, Facebook gets access to a wider audience.
- Will help in creating opportunities for 60 million small businesses across India.
- To help people and businesses operate more effectively in growing digital economy.
- For instance, by bringing together JioMart, Jio’s small business initiative, with the power of WhatsApp, we can enable people to connect with businesses, shop and ultimately purchase products in a seamless mobile experience, Facebook said.
- Our efforts with Jio will be focused on opening new doors and fueling India’s economic growth and the prosperity of its people, it said.
Here’s what Mark Zuckerberg has to say
Facebook said, “This investment underscores our commitment to India, and our excitement for the dramatic transformation that Jio has spurred in the country. In less than four years, Jio has brought more than 388 million people online, fueling the creation of innovative new enterprises and connecting people in new ways. We are committed to connecting more people in India together with Jio.”
Mark Zuckerberg, in a statement, said:
There’s a lot going on in the world right now, but I wanted to share an update on our work in India. Facebook is teaming up with Jio Platforms — we’re making a financial investment, and more than that, we’re committing to work together on some major projects that will open up commerce opportunities for people across India.
India is home to the largest communities on Facebook and WhatsApp, and a lot of talented entrepreneurs. The country is in the middle of a major digital transformation and organizations like Jio have played a big part in getting hundreds of millions of Indian people and small businesses online.
Here’s what JIO has to say
Jio said, “The partnership between Facebook and Jio is unprecedented in many ways. This is the largest investment for a minority stake by a technology company anywhere in the world and the largest FDI in the technology sector in India. The investment values Jio Platforms amongst the top 5 listed companies in India by market capitalization, within just three and a half years of launch of commercial services, validating Reliance Industries’ capability in incubating and building disruptive next-generation businesses, while delivering market defining shareholder value.”
news via : moneycontrol.com