Facebook buys 9.99 percent stake in Reliance Jio Platforms for Rs. 43,574 Crore
Social networking site Facebook on Wednesday announced that it has bought a 9.99 percent stake in Mukesh Ambani’s digital operation Reliance Jio, for Rs 43,574 crore, in a deal that puts the pre-money enterprise value of Jio Platforms at Rs 4.62 lakh crore. In an official statement, the company said: "Today, we are announcing a USD 5.7 billion, or Rs 43,574 crore, investment in Jio Platforms Limited, part of Reliance Industries Limited, making Facebook its largest minority shareholder."
This multibillion-dollar deal with the social netwowrking site, is the largest minority shareholder in Jio Platforms Limited. This will Facebook a firm foothold in a fast-growing massive market, and helps the Indian oil-to-telecom conglomerate to significantlu cut debt, according to reports.
Commenting on the partnership with Facebook, RIL chairman Mukesh Ambani said, “When Reliance launched Jio in 2016, we were driven by the dream of INDIA’S DIGITAL SARVODAYA – India’s Inclusive Digital Rise to improve the quality of life of every single Indian and to propel India as the world’s leading Digital Society. All of us at Reliance are therefore humbled by the opportunity to welcome Facebook as our long-term partner in continuing to grow and transform the digital ecosystem of India for the benefit of all Indians."
In a Facebook post, Mark Zuckerberg said one focus of the collaboration with Jio will be creating new ways for people and businesses to operate more effectively in the 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.”
Despite the rapid growth of its social network and WhatsApp, Facebook stumbled with its Free Basics plan to provide free internet services after a ban by Trai, the telecom regulator. It now has an established ally with an established rural network on its side that is present in sectors ranging from telecom to e-commerce to home internet.
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