Facebook has bought a 9.9% stake in Reliance Jio for $5.7 billion (Rs 43,574 crore), the telecom unit of Reliance Industries (RIL), in a multibillion-dollar deal.
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 ₹ 70 to a US Dollar).
Let's see key interesting data points of Reliance Jio and Facebook.
Facebook's famous acquisitions in the past. In 2012, Facebook acquired photo and video-sharing platform Instagram for $1 billion. In 2014, Facebook acquired the text messaging company WhatsApp for $19 billion.
Facebook deal values Jio at Rs 4.62 lakh crore, puts it among the top 5 listed firms in India. The investment values Jio Platforms amongst the top 5 listed companies in India by market capitalization. The top four companies in the market-cap are Reliance Industries, Tata Consultancy Services, Hindustan Unilever and HDFC Bank.
In Q3FY20, Reliance Jio's share in the total revenue earned by the telecom sector grew to 37.1 percent, which is the highest in the industry compared to other players.
Both Jio and Facebook have a huge subscriber base. In India, Reliance Jio Infocomm provides a connectivity platform to over 388 million subscribers. Facebook has 260 million users in India, which is more than any other country in the world.
Even Facebook’s Whatsapp has 340 million users in India. Brazil has second-most subscriber-base of 99 million.
Disclaimer: Reliance Industries Ltd. is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd
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