Facebook invests $5.7 billion in Reliance Jio. Now Facebook becomes largest minority shareholder in Reliance Jio
Facebook invests $5.7 billion in Reliance Jio. Now Facebook becomes largest minority shareholder in Reliance Jio
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| FACEBOOK, JIO LOGO (IMAGE CREDIT FACEBOOK,JIO) |
Facebook's investment will translate to a 9.99% equity stake in Jio Platforms on a fully diluted basis, Reliance Jio said in a statement.
Facebook`s note on this investment . "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.
India is in the midst of one of the most dynamic social and economic transformations the world has ever seen, driven by the rapid adoption of digital technologies. In just the past five years, more than 560 million people in India have gained access to the internet.
Our goal is to enable new opportunities for businesses of all sizes, but especially for the more than 60 million small businesses across India. They account for the majority of jobs in the country, and form the heart and soul of rural and urban communities alike. In the face of the coronavirus, it is important that we both combat this global pandemic now, and lay the groundwork to help people and businesses in the years to come.''
Facebook tried and failed in an attempt to launch its Free Basics Internet service (internet.org or free basics) in India.
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Internet.org (image credit-facebook) |
“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,” said Facebook’s co-founder and chief executive Mark Zuckerberg in a Facebook posting.
The Best Deal
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| FACEBOOK, JIO LOGO (IMAGE CREDIT FACEBOOK,JIO) |
The Facebook deal is part of value unlocking by RIL to cut debt. RIL has been seeking strategic partnerships across its businesses while targeting to deleverage its balance sheet. It has been talking to Saudi Aramco for sale of a 20 percent stake in its oil-to-chemical business for an asking of $15 billion. RIL has already tied up with BP Plc for fuel business as it targets to have a debt-free status by next year, update by PTI.
Jio had also been reportedly talking separately to Google, update by PTI.
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