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Last Updated : Apr 22, 2020 10:46 AM IST | Source: Moneycontrol.com

Facebook buys 9.9% stake in Reliance Jio: Here are key highlights of the deal

The deal is a win-win for both Facebook and Jio.

Facebook on April 22 announced an investment of $5.7 billion (Rs 43,574 crore) to buy a 9.9 percent stake in the firm that houses billionaire Mukesh Ambani's telecom arm Jio, as the social media giant looks to expand presence in India - its largest market in terms of subscriber base.
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Facebook on April 22 announced an investment of $5.7 billion (Rs 43,574 crore) to buy a 9.9 percent stake in the firm that houses billionaire Mukesh Ambani's telecom arm Jio, as the social media giant looks to expand presence in India - its largest market in terms of subscriber base.

This is the largest investment for a minority stake by a technology company anywhere in the world and the largest FDI in the technology sector in India, Reliance Industries Limited (RIL) said in a statement.
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This is the largest investment for a minority stake by a technology company anywhere in the world and the largest FDI in the technology sector in India, Reliance Industries Limited (RIL) said in a statement.

The investment values Jio Platforms amongst the top 5 listed companies in India by market capitalization, within just three and a half years of launch of commercial services, said RIL.
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The investment values Jio Platforms amongst the top 5 listed companies in India by market capitalization, within just three and a half years of launch of commercial services, said RIL.

On the deal announcement, Facebook said: This investment underscores our commitment to India, and our excitement for the dramatic transformation that Jio has spurred in the country. Our goal is to enable new opportunities for businesses of all sizes, but especially for the more than 60 million small businesses across India.
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On the deal announcement, Facebook said: This investment underscores our commitment to India, and our excitement for the dramatic transformation that Jio has spurred in the country. Our goal is to enable new opportunities for businesses of all sizes, but especially for the more than 60 million small businesses across India.

Concurrent with the investment, Jio Platforms, Reliance Retail and Facebook's WhatsApp service have also entered into a commercial partnership agreement to further accelerate Reliance Retail’s new commerce business on the JioMart platform using WhatsApp.
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Concurrent with the investment, Jio Platforms, Reliance Retail and Facebook's WhatsApp service have also entered into a commercial partnership agreement to further accelerate Reliance Retail’s new commerce business on the JioMart platform using WhatsApp.

The latest deal is a win-win for both Facebook and Jio. It would give Facebook deeper access to India, the second-largest internet market after China.
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The latest deal is a win-win for both Facebook and Jio. It would 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.
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The deal will help reduce RIL’s debt burden, which bulged due to the breakneck expansion of Jio and other businesses.

First Published on Apr 22, 2020 10:40 am
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