April 22, 2020: Social media advertising company Facebook to invest $5.7 billion that is around ₹43,574 crore in Jio, a unit of Reliance Industries. The company will buy 9.99% stake in Reliance Jio as the estimated value for Jio platforms – digital applications – ₹4.62 lakh crore.
Facebook has been an unparalleled company to enjoy the highest reach in India for more than a decade, but nurtured in China’s fastest growing market, ByteDance is emerging to give a tough competition in that way it would become the second biggest internet market.
“Reliance Industries Limited”, Jio Platforms Limited and Facebook Inc. (American Social Media Company) today signed the bidding documents to ensure the investment of $5.7B in buying 9.99% stakes of Reliance Jio, “Said Mukesh Ambani, Owner of Reliance Industries Ltd in a press release on Wednesday.”
₹4.62 lakh crore deal with Reliance Industries led by Mukesh Ambani-LED Reliance Industries Ltd. reduced debts and paved a way for Mark Zuckerburg-led social media company Facebook to get a stronger bond with the company to stand in the biggest US market.
Reliance Jio, a three-and-a-half-year-old company is the most valued organization in India, Reliance Industries, the more renowned telecom operator in the country with over 370M subscribers.
The deal held on Tuesday which estimated value at a pre-money valuation was about $65.95 billion, makes Facebook the biggest minority stakeholder in the largest Indian Telecom network.
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Reliance Industries Ltd. said that Facebook has made the largest investment for a minority stake and has become the first biggest company to buy a stake in RIL. And this is the biggest FDI in the technology sector anywhere in the world. Reliance Jios stake value before closing was up to 7.2% estimated ₹1,324.55 on the BSE.
“Deal underscores it’s promises to India.” said Facebook in a separate statement. Reliance Jio welcomes Facebook in the biggest market of India to spread it’s venture and extend reach with 328M monthly users and Facebook-owned WhatsApp message app has more than 400 million users in the world. The object of the deal is to encourage small businesses in India, said Mukesh Ambani.
