Facebook to invest over Rs 43,574 cr in Reliance Jio
The US social media giant Facebook, on Wednesday,
announced buying 9.9 % stake, amounting to Rs 43,574 crore, in the telecom unit
of Reliance Industries Ltd (RIL) Reliance Jio. As the news circulated in the
market, it boosted Mukesh Ambani-led
RIL’s shares by over 8% in early trade.
With this investment, the value of Jio Platforms will soar to Rs 4.62 lakh crore. The deal once finalised will become the largest Foreign Direct Investment move in India’s tech industry.
Both the companies issued separate statements saying that they intend to work together on major projects across India.
Chairman and Managing Director of RIL through a statement said, “At the core of our partnership is the commitment that Mark Zuckerberg, founder of Facebook, and I share for the all-round digital transformation of India and for serving all Indian. In the post-Corona era, I am confident of India’s economic recovery and resurgence in the shortest period of time. The partnership will surely make an important contribution to this transformation.”
He added, “The investment values Jio Platforms amongst the top 5 listed companies in India by market capitalisation, within just three-and-a-half years of the launch of commercial services.”
Facebook’s CEO Mark Zuckerberg in a Facebook post speaking about the deal wrote, “This is especially important right now, because small businesses are the core of every economy and they need our support. India has more than 60 million small businesses and millions of people rely on them for jobs. With communities around the world in lockdown, many of these entrepreneurs need digital tools they can rely on to find and communicate with customers and grow their businesses.”
Currently, Facebook’s primary footprint in India comes from the massive WhatsApp userbase, which is over 400 million.