Facebook partners with Mukesh Ambani’s Reliance Jio. Mark Zuckerberg explains why
Facebook's investment of ₹43,574 crore will translate to a 9.99% equity stake in Jio Platforms on a fully diluted basis
Facebook on Wednesday announced an investment of $5.7 billion ( ₹43,574 crore) in Reliance Industries Ltd's telecom unit on Wednesday, making it the largest minority shareholder in Jio Platforms Limited. Facebook's investment will translate to a 9.99% equity stake in Jio Platforms on a fully diluted basis, Jio said.
The investment by Facebook values Jio Platforms at ₹ 4.62 lakh crore pre-money enterprise value ($65.95 billion, assuming a conversion rate of ₹ 70 to a US Dollar)
Here's what Reliance Industries CMD said about the Facebook-Jio deal:
When Reliance launched Jio in 2016, we were driven by the dream of INDIA’S DIGITAL SARVODAYA – 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 Shri 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.
Here's what Facebook CEO said about the Facebook-Jio deal:
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.
This is especially important right now, because small businesses are the core of every economy and they need our support. India has more than 60 million small businesses and millions of people rely on them for jobs. With communities around the world in lockdown, many of these entrepreneurs need digital tools they can rely on to find and communicate with customers and grow their businesses. This is something we can help with -- and that's why we're partnering with Jio to help people and businesses in India create new opportunities.
I want to thank Mukesh Ambani and the entire Jio team for their partnership. We're looking forward to getting started.
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Business NewsCompaniesNewsFacebook partners with Mukesh Ambani’s Reliance Jio. Mark Zuckerberg explains why
First Published:22 Apr 2020, 08:00 AM IST
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