In a time of Pandemic where millions of people have lost their jobs and many are in danger of losing it, the deal between Facebook and Reliance Jio is showing a new ray of hope. Read full news:
COLLABORATION BETWEEN FACEBOOK AND JIO
Good news for the Jio shareholders and Jio subscribers because yesterday Facebook has bought a 9.99 percent stake in the Jio platform. Facebook will invest Rs 43,574 crore, largest FDI in India’s technology sector
A Deal with a New Dimension
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 Rs70 to a US Dollar). Facebook’s investment will translate into a 9.99% equity stake in Jio Platforms on a fully diluted basis,” the oil to telecom business house,” said RIL in a statement.
Reason of collaboration
Reliance was making his deliberate efforts to reduce its debt by tempting the other countries to buy their stakes. The deal implies an enterprise value of Rs 4.7 lakh crore and valuation implies a forward EBITDA of Rs 398-477 billion. The company also has Rs 41,000 crore of net debt on Jio Platforms’ balance sheet.
Mark Zuckerberg, the founder of Facebook, said
” I share for the all-round digital transformation of India and for serving all Indians. In the post-Corona era, I am confident of India’s economic recovery and resurgence in the shortest period of time”Mark Zuckerberg, the founder of Facebook,
“The core of our partnership is the commitment. The partnership will surely make an important contribution to this transformation”Mukesh Ambani, chairman and MD of RIL
Jio Platforms, 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.
More Kirana shops will promote digital apps
“In the very near future, JioMart – Jio’s digital new commerce platform, and Whatsapp – will empower nearly 3 crores small Indian Kirana shops to digitally transact with every customer in their neighborhood. This means all of you can order and get faster delivery of day-to-day items, from nearby local shops,”Mukesh Ambani
He added that at the same time, small Kirana shop can grow their businesses and create new employment opportunities using digital technologies.
India will have new job opportunities
“Our goal is to enable new opportunities for businesses of all sizes, but especially for the more than 60 million small businesses across India. They account for the majority of jobs in the country and form the heart and soul of rural and urban communities alike. In the face of the coronavirus, it is important that we both combat this global pandemic now and lay the groundwork to help people and businesses in the years to come,”Facebook
- *Whatsapp also got included in the commercial partnership agreement.
- *Deal valued Jio at 4.62lakh cr. (65.95billion)
- *This deal will let RIL cut their debt.
- *Jio is now amongst the top five platforms.
This is not for the first time when JIO’S Stakes are bought before it Saudi Aramco had bought a 20 percent stake in the oil-to-chemical of reliance business.