Facebook buys 9.99% stake in Reliance Jio for Rs 43,574 crore

ALL ABOUT RELIANCE & FACEBOOK DEAL

Facebook will invest Rs 43,574 crore in Jio Platforms, a unit of Reliance Industries NSE 0.54 % Ltd (RIL), for a 9.99% stake. It means Facebook will be a minority platform in the Jio platform. This investment will be a long term investment as per their binding agreement. It's a big FDI (Foreign Direct Investment ) in the current Telecom Sector. Though the deal is not yet approved by the Indian Government. As per the current economic situation, there is no chance of not giving a green signal to this deal because the Government will be making a profit of approx 5000 to 6000 crores by collecting taxes. You can also find the official press release of Reliance Jio as given below:

The Jio-Facebook deal will help Reliance Industries to reduce the debt burden while on the other hand, it will help Facebook to get a stronger foothold in the market. RIL's net debt approx RS 1.53 lakh crore and recently Ambani announced to become a ZERO net debt company by March 31, 2021 (while addressing the company's 42nd Annual General Meeting on August 12, 2019). 

    WhatsApp already plays an important role in helping people and businesses connect in India. Reliance Retail's new commerce platform, JioMart, is being built in partnership with millions of small merchants and Kirana shops to empower them to better serve the needs of Indian consumers. 

 So Facebook & WhatsApp will be going to play an important role to grow the Reliance E-Commerce platform.

What will Facebook gets from all of this:

India is already the biggest market for Facebook (260 million users), WhatsApp(400 million User), and the second-largest for Instagram (80 million users).

  

Facebook going to make huge revenue with this crowed. For instance, the moment Facebook launches its short-form video app Lasso (like TIK TOK) on Jio's platform it will immediately become bigger than TIK TOK with 400 million Jio Subscribers. 

Also, Facebook-owned WhatsApp planning to launch a payment service in India (As digital payment is immensely growing in India).