The social media giant, Facebook, is said to be in talks with telecom giant in India, Reliance Jio, to acquire a major stake in the latter company. As per a report by Financial Times, Facebook was at the verge of closing a deal to acquire around 10 percent stake in the Mukesh Ambani owned Reliance Jio.
The deal was likely to close in March this year and the deal was to be announced by the month end. However, the deal couldn’t be concluded due to the Novel Corona Virus pandemic. It is still unknown if this deal will be concluded after the situation comes back to normal or would it be halted by Facebook.
Speculations are high that the COVID-19 pandemic will leave the world with a recession period which is fearing major countries, especially, economically backward nations. Thus, it is still not confirmed if the US origin social media giant will sign the deal in the near future with Jio.
It is said that Reliance Jio has plans to bring it’s parent company’s, Reliance Industries Ltd., debt to zero by March 2021 through this deal by selling off it’s stake to Facebook. The Mukesh Ambani owned Reliance Industries Ltd. will also sell off its refining division’s stake to Saudi Aramco with the aim to become a debt free company.
To recall, US origin search engine giant, Google, was also in talks with Reliance Jio to acquire a multi billion dollar stake in the company. However, the deal is yet to see the light of the day due to the Corona Virus outbreak.
While Facebook and Google are in the process to invest in the 2016 commercially operational Reliance Jio, Microsoft has already mingled with Reliance Jio. Microsoft has collaborated with Jio to provide its cloud-computing service to the Indian origin telecom giant.
Talking about Facebook, the company has 328 million users in India on it’s Facebook site while 400 million users in India on its WhatsApp application. The company sees India as it’s one of the biggest markets to expand it’s wings. This is because of the substantial youth population in the country. In fact, investment in Reliance Jio will be the company’s third biggest investment after in Meesho and Unacademy.