Published 07:40 IST, April 22nd 2020
Read the full statement of Facebook's $5.7 Billion investment into Jio Platforms for 9.99%
In a massive development, Facebook on Wednesday announced an investment of USD 5.7 billion (Rs 43,574 crore) for acquiring a 9.99% stake in Jio Platforms Ltd
In a massive development, Facebook on Wednesday announced an investment of USD 5.7 billion (Rs 43,574 crore) for acquiring a 9.99% minority stake in Jio Platforms Ltd as it looks to expand presence in its largest market in terms of subscriber base. Additionally, Reliance Industries Limited also issued a statement to the same effect. It also added that along with Facebook, it has also entered into a commercial partnership agreement with Whatsapp.
"Today, we are announcing a USD 5.7 billion, or Rs 43,574 crore, investment in Jio Platforms Limited, part of Reliance Industries Limited, making Facebook its largest minority shareholder," Facebook said in a statement.
Statement by Reliance Industries Limited
Releasing its statement, the Reliance Industries Limited said that it is signing 'binding agreements for an investment of Rs 43,574 crore by Facebook into Jio Platforms. This investment by Facebook values Jio Platforms at Rs 4.62 lakh crore pre-money enterprise value. Facebook's investment will translate into a 9.99% equity stake in Jio Platforms on a fully diluted basis."
Calling the partnership 'unprecedented', the Reliance industries in its statement added that it is the largest FDI in the technology sector. It said that the goal of the investment is to enable new opportunities for businesses and create new and exciting digital ecosystems to empower 1.3 billion Indians. It also said that the partnership assumes special significance amid disruption caused by coronavirus outbreak, adding that 'comprehensive digitalisation' will be a 'necessity for the revitalisation of the Indian economy.'
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The Chairman and Managing Director of Reliance Industries limited Mukesh Ambani said, "All of us at Reliance are humbled by the opportunity to welcome Facebook as our long-term partner in continuing to grow and transform the digital ecosystem of India for benefit of Indians." He added, "In post corona era, I am confident of India's economic recovery and resurgence and in the shortest period of time. This partnership will surely make an important contribution to the transformation."
Here is the full statement:
Updated 07:40 IST, April 22nd 2020