Reliance Jio-Facebook $5.7 bn partnership: Mark Zuckerberg-led social media firm to get deeper access to India; deal to help reduce RIL debt burden
Facebook has bought a 9.9 percent stake in Reliance Jio in a multinational-dollar deal.
On 22 April, Facebook announced it is investing $5.7 billion in Reliance Industries' Jio platforms.
What does the deal mean to both firms?
The deal will give Facebook deeper access to India, the second-largest internet market after China. The deal will help reduce RIL’s debt burden, which bulged due to the breakneck expansion of Jio and other businesses.
Facebook has bought a 9.9 percent stake in Reliance Jio in a multinational-dollar deal.
Facebook will have direct exposure to Reliance Jio’s subscriber base.
Representational image. Reuters
After Rs 43,574 crore deal between Facebook and Jio, the investment values Jio Platforms among the top-5 listed firms in India by market capitalisation.
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)
The Jio-FB deal is worth more than the GDP of some Indian states/UTs.
This deal would aid RIL in achieving zero-debt status by March 2021.
Reliance Industries share price rose over 8 percent in intraday trade on 22 April after Facebook announced the investment in the company's telecom unit.
(Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd which publishes Firstpost)
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