you are here: HomeNewsBusiness

Jio-Facebook deal | CCI approves Facebook's proposed acquisition of 9.9% stake in Jio Platforms

Facebook will acquire the stake in Jio Platforms via Jaadhu Holdings LLC, a wholly-owned subsidiary it had created earlier this year.

June 24, 2020 / 05:58 PM IST
  • bselive
  • nselive
Todays L/H

The Competition Commission of India (CCI) on June 24 approved Facebook's proposed acquisition of a 9.99 percent stake in Reliance Industries' digital arm Jio Platforms. Facebook will acquire the stake through its wholly-owned subsidiary Jaadhu Holdings LLC.

Social media giant Facebook on April 22 announced its plan to purchase a stake in Jio Platforms for $5.7 billion (Rs 43,574 crore). The much-talked-about deal gives it a firm foothold in India's fast-growing digital market while also helping the Indian oil-to-telecom conglomerate significantly cut its debt.

For Facebook, India has in recent years emerged as a critical market. The company has more users in India than any other country. Its WhatsApp chat service, which has attracted 340 million users and is about to launch a key payments service will take on incumbents Paytm, Google Pay, PhonePe and Amazon Pay.

Since its deal with Facebook, Jio Platforms has attracted a series of investments from players like General AtlanticSilver Lake (twice), Vista Equity PartnersKKRMubadala Investment CompanyADIATPGL Catterton and Saudi Arabia's PIF have queued up for investments in Jio.

With its latest deal with PIF, RIL has shed 24.7 percent stake in Jio Platforms and has raised Rs 115,693.95 crore from some of the world’s top technology investors.

Disclosure: Reliance Industries Ltd., which also owns Jio, is the sole beneficiary of Independent Media Trust which controls Network18 Media & Investments Ltd.

Moneycontrol News
first published: Jun 24, 2020 05:38 pm

stay updated

Get Daily News on your Browser