INDIA Cases - 198,370, Deaths - 5,608
Global Cases - 6,343,320, Deaths - 376,295
Facebook Inc has invested $5.7b in Reliance Jio translating to a 9.99% equity stake in Billionaire Mukesh Ambani owned Jio. The Facebook India said it would focus on collaborating its messaging platform WhatsApp with Reliance Jio's e-commerce venture JioMart. Facebook’s investment will translate to a 9.99% equity stake in Jio Platforms on a fully diluted basis, Reliable Jio intimated on Tuesday. FacebookFacebook has planned to collaborate with JioMart with its Social Media giant WhatsApp to enable people to connect with small businesses.
Earlier Financial Times reported that social media giant was in talks for a 10% stake in Jio but the talks were halted due to global travel bans amid the coronavirus outbreak.
David Fischer, the Chief Revenue Officer at Facebook, and Ajit Mohan, Vice President and Managing Director of Facebook India, on collaboration with Reliance Jio said one example of such collaboration could be bringing together JioMart with WhatsApp a Facebook Inc owned Social Media platform. The deal comes when Facebook-owned WhatsApp recently secured its digital payment services in India. Reports have hinted that to compete with Google Pay and Paytm in Indian msrket, Facebook Inc has pitched it’s investment plan in Reliance Jio.
Facebook’s Investment in Reliance Jio
Facebook has announced that it has invested $5.7 billion for a 9.99% stake in India’s Reliance Jio a largest telecom operator in India with more than 370 million subscribers. The deal valued Jio at a pre-money valuation of $65.95 billion
Facebook's investment will translate to a 9.99% equity stake in Jio Platforms on a fully diluted basis, Jio said in a statement
WhatsApp has 400 million users in India, its biggest market, reaching nearly 80% of smartphone users in the country.
Reliance Jio, the fast-growing telecom carrier controlled by billionaire Mukesh Ambani, began operations in late 2016.
Should Read-Zoom App not secure says MHA
Billionaire Mukesh Ambani owned Reliance Jio, began its commercial operation in 2016, upended the local telecom market by offering bulk of 4G data and free voice calls for nine months. Reliance Jio also owns a suite of services including music streaming service JioSaavn, which it plans to take public, smartphones, broadband business, on-demand live television service JioTV, and payments service JioPay.
Reaching Jio’s users might interest Facebook, which attempted and failed to expand its free internet initiative, Free Basics, in India, last year.