Facebook has reportedly expressed an interest to buy a minority stake in the Reliance Jio. According to reports, Facebook held talks with Ambani-owned Reliance Jio to acquire 10 percent minority stake in the company. The move is to boost the Digital India initiative. This is the first-ever equity dilution for a major strategic investor. Recently, Reliance adopted tough measures to make the telecom entity debt-free through the restructuring process. Reliance recently announced that they are venturing into healthcare business to its quest to combat COVID-19.
Even though the Reliance Jio was supposed to finalize the deal by March 31, the move is delayed due to the 21-day lockdown as announced by Prime Minister Narendra Modi. The discussions will continue only when the spread of the Coronavirus is contained. The Silicon Valley headquarters of the company has been closed and staff is working from home. Hence, it’s virtually impossible for the employees and top management officials to reach India and proceed with discussions.
Commenting on the development, Reliance Jio Director Akash Ambani disclosed that Jio is always looking to work with key global partners in a bid to enhance the digital life experience of consumers. Moreover, it will eradicate the barriers of information asymmetry and provide accessibility in real-time.
Reliance Jio is India’s largest Telecom network with over 370 million subscribers. The company posted a record 62.5 percent growth in the overall profits. The company has been the driver of digital revolution in India. With the upcoming partnership with Facebook, the company aims to bridge the digital divide. The company added that truly transformational and disruptive digital services have been set up to bring together the entire digital ecosystem of the country.
Reliance Jio had sought Government approvals for conducting 5G trials in India. We expect the start of the trial by the end of 2020. There will be a delay because of the COVID-19 outbreak.
