Jio and Facebook deal
Concurrent with the investment, Jio Platforms, Reliance Retail and Facebook’s WhatsApp service have also entered into a billboard partnership agreement.
Further accelerate Reliance Retail’s new commerce business on the JioMart platform using WhatsApp and to support small businesses on WhatsApp, RIL said.
The Facebook deal with Jio is now the centrepiece of the ambitions of India’s biggest private company to cut net debt to zero by March 2021.
Facebook has bought a 9.9% stake in Reliance Jio for $5.7 billions.
The telecom unit of RIL during a deal that provides the social media giant a firm foothold during a fast-growing massive market and helps the Indian oil-to-telecom conglomerate to significantly cut debt.
- The Jio deal will help reduce RIL’s debt burden while for Facebook.
- The deal values Jio at $65.95 billion.
RIL said, this is the largest investment for a minority stake by a technology company anywhere in the world & the largest FDI in the technology sector in India.
The investment values Jio Platforms amongst the highest 5 listed companies in India by capitalization, inside three and a half years of launch of economic services.
“This investment underscores our commitment to India, and our excitement for the dramatic transformation that Jio has spurred within the country. In but four years, Jio has brought quite 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 along with Jio.”said Facebook.
For Facebook, India has in recent years emerged as a critical market. The company has more users in India than the other country.
Despite the rising of its social network and WhatsApp, Facebook stumbled with its Free Basics arrange to provide free internet services after a ban by Trai, the telecom regulator.
A recent report by Cisco said that India is poised to possess quite 900 million internet users due to the increased penetration of affordable smartphones and cheaper internet plans.
One report said, India will also have around 2.1 billion internet-connected devices by 2023.