iWorld

Facebook takes 9.9% stake in Reliance Jio, to invest Rs 43,574 cr

The partnership to create opportunities for people and businesses

https://www.indiantelevision.com/sites/default/files/styles/smartcrop_800x800/public/images/tv-images/2020/04/22/leg.jpg?itok=u4S6_aYT

Mumbai: Facebook has bought a 9.9 per cent stake in Reliance Jio for $5.7 billion (Rs 43,574 crore), the telecom unit of Reliance Industries Ltd (RIL). The multibillion-dollar deal gives the social media giant a firm foothold in a fast-growing massive market and helps the Indian oil-to-telecom conglomerate to significantly cut debt.

This investment by Facebook values Jio platforms at Rs 4.62 lakh crore pre-money enterprise value ($65.95 billion, assuming a conversion rate of Rs 70 to a US Dollar). Facebook’s investment will translate into a 9.99 per cent equity stake in Jio Platforms on a fully diluted basis.

Mark Zuckerberg, in a statement, said: “There's a lot going on in the world right now, but I wanted to share an update on our work in India. Facebook is teaming up with Jio Platforms; 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. India is home to the largest communities on Facebook and WhatsApp, and a lot of talented entrepreneurs. The country is in the middle of a major digital transformation and organizations like Jio have played a big part in getting hundreds of millions of Indian people and small businesses online.”

Reliance Industries Ltd chairman and managing director Mukesh Ambani said: “When Reliance launched Jio in 2016, we were driven by the dream of India’s digital Survodaya – India’s inclusive digital rise to improve the quality of life of every single Indian and to propel India as the world’s leading Digital Society. All of us at Reliance are therefore humbled by the opportunity to welcome Facebook as our long-term partner in continuing to grow and transform the digital ecosystem of India for the benefit of all Indians. The synergy between Jio and Facebook will help realise prime minister Narendra Modi’s ‘Digital India’ Mission with its two ambitious goals — ‘ease of living’ and ‘ease of doing business’ – for every single category of Indian people without exception. 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.”

Jio Platforms, a wholly-owned subsidiary of Reliance Industries Ltd, is a next-generation technology company building a digital society for India by bringing together Jio’s leading digital apps, digital ecosystems and India’s #1 high-speed connectivity platform under one umbrella. Reliance Jio Infocomm Limited, which provides connectivity platform to over 388 million subscribers, will continue to be a wholly-owned subsidiary of Jio Platforms.

Jio’s vision is to enable a digital India for 1.3 billion Indians and Indian businesses, especially small merchants, micro-businesses and farmers. Jio has brought transformational changes in the Indian digital services space and propelled India on the path towards becoming a global technology leader and among the leading digital economies in the world. 

Jio has built a world-class digital platform powered by leading technologies such as broadband connectivity, smart devices, cloud and edge computing, big data analytics, Artificial Intelligence, Internet of Things, Augmented and Mixed Reality and Blockchain.

Jio has created an eco-system comprising network, devices, applications, content, service experiences and affordable tariffs for every Indian to experience the Jio Digital Life. During the current Covid-19 crisis, Jio’s platforms have been a dependable and inclusive Digital Lifeline for India, said a company statement.

As one of the largest countries in the world, India is home to some of Facebook’s most thriving communities on WhatsApp, Facebook and Instagram. Over the years, Facebook has invested in India based on a strong belief in country’s entrepreneurial talent and opportunity, to help create meaningful impact for Indians and Indian businesses using their multiple platforms.

The partnership between Facebook and Jio is unprecedented in many ways. This is the largest investment for a minority stake by a technology company anywhere in the world and the largest FDI in the technology sector in India. The investment values Jio Platforms amongst the top five listed companies in India by market capitalisation, within just three and a half years of launch of commercial services, validating Reliance Industries’ capability in incubating and building disruptive next-generation businesses, while delivering market defining shareholder value.

The investment will enable new opportunities for businesses of all sizes, but especially for small businesses across India and create new and exciting digital ecosystems that will empower, enrich and uplift the lives of all 1.3 billion Indians.

This partnership will accelerate India’s all-round development, fulfilling the needs of Indian people and the Indian economy. The partnership focus will be India’s 60 million micro, small and medium businesses, 120 million farmers, 30 million small merchants and millions of small and medium enterprises in the informal sector, in addition to empowering people seeking various digital services.

The partnership assumes special significance for India in the wake of the severe disruptions caused by the COVID-19 pandemic in the Indian — and the global — economy. In the post-COVID era, comprehensive digitalisation will be an absolute necessity for revitalisation of the Indian economy.

Concurrent with the investment, Jio Platforms, Reliance Retail Limited (Reliance Retail) and WhatsApp have also entered into a commercial partnership agreement to further accelerate Reliance Retail’s New Commerce business on the JioMart platform using WhatsApp and to support small businesses on WhatsApp. WhatsApp already plays an important role in helping people and businesses connect in India. Reliance Retail’s New Commerce platform, JioMart, is being built in partnership with millions of small merchants and kirana shops to empower them to better serve the needs of Indian consumers. The companies will work closely to ensure that consumers are able to access the nearest kiranas which can provide products and services to their homes by transacting seamlessly with JioMart using WhatsApp.

The transaction is subject to regulatory and other customary approvals. Morgan Stanley as financial advisor and AZB & Partners and Davis Polk & Wardwell as counsels advised on the transaction.

Latest Reads

https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/29/mpob.jpg?itok=49Au6PEu
How OTT platforms stay innovative in a cluttered market

As OTT platforms are making all the necessary moves to keep the users hooked, these players are realising that innovation is the key mantra to achieve this objective. To keep up with the pace with which users are adapting to streaming services, most of the players in the ecosystem are scaling up...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/28/alt.jpg?itok=rAEpqjAg
ALTBalaji seeing rapid uptake in tier II & III cities during post-Covid period

Going beyond the initial metro syndrome, over-the-top (OTT) platforms in India are seeing massive adoption in tier II, tier III cities, and even in rural areas. The massification is happening faster than it was predicted courtesy to content in Indian languages, better bandwidth, easier payment...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/25/sonyliv.jpg?itok=9epIQ_bf
SonyLIV’s KBC Play Along heightens consumer delight with KBC 12

KOLKATA: SonyLIV makes staying-at-home rewarding with an unprecedented offering of ‘Har Din 10 Lakhpati’ under ‘KBC Play Along’. As the most awaited reality show makes a grand comeback, SonyLIV takes audience engagement notches higher with this innovative extension. This season KBC Play Along’ is...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/25/mirzapur.jpg?itok=OMAFSB-n
Amazon Prime Video makes Mirzapur Season 1 available for free

KOLKATA: As the release date for the most-anticipated season two of Mirzapur fast approaches, the excitement for the show is increasing every single day. So much so that the team of Amazon Prime Video is all set to give die-hard fans like us the full first season at no cost! With Season 1 of the...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/29/gautm.jpg?itok=kjA7LkD2
Aashram was viewed by users from 2500+ cities: MX Player’s Gautam Talwar

KOLKATA: How do you spend time when a virus has taken away all the usual options of outside home entertainment? The answer lies in screens. For most of the country, the television sets and the six-inch screens have served as source of entertainment since the onset of the pandemic. But at the...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/25/jip.jpg?itok=XiO4Kvnf
Jio overtakes Hathway wired broadband subscriber base in Jun-20

BENGALURU: Mukesh Ambani’s Reliance Jio Infocomm (Jio) has been the largest broadband internet services provider in the country – a major portion of its subscriber base is wireless internet – through the mobile phone. However, the player is also making strides in terms of customer acquisition for...

iWorld Telecom
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/25/ott.jpg?itok=rnExhqHG
Why OTT platforms focus on user feedback

As the over-the-top ecosystem turns more cluttered and competitive, the platforms are gearing up to retain users. Along with building a robust content slate, all the streaming services are also ensuring seamless viewing experience for the users.

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/24/voot.jpg?itok=k4EvO8Qu
Voot Select premiers The Comey Rule

KOLKATA: The US Presidential Election 2020 is the most anticipated political event unfolding in a matter of weeks. But before the dynamics of world politics get ruffled again, we must witness a recreation of the tumultuous relationship between a decorated former FBI Director and current US...

iWorld Over The Top Services
https://www.indiantelevision.com/sites/default/files/styles/340x340/public/images/tv-images/2020/09/24/mk.jpg?itok=zjoQs_eN
KKR to invest Rs 5,500 crore in Reliance Retail Ventures

Reliance Industries Limited (“Reliance Industries”) and Reliance Retail Ventures Limited (“RRVL”) announced that global investment firm KKR will invest Rs 5,550 crore into RRVL, a subsidiary of Reliance Industries.

iWorld Over The Top Services

Sign up for our Newsletter

subscribe for latest stories

* indicates required