Published 08:18 IST, April 22nd 2020
Here's Jio's new valuation as Facebook buys 9.9% stake in Reliance subsidiary for $5.7 Bn
Reliance Industries Limited (RIL) on Wednesday announced that US tech giant Facebook had invested Rs 43,574 crore to pick up a 9.99% stake in Jio Platforms
Reliance Industries Limited (RIL) on Wednesday morning announced that US tech giant Facebook had invested Rs 43,574 crore to pick up a 9.99% stake in its subsidiary Jio Platforms. The deal - equivalent to $5.7 Billion - values Jio Platforms at Rs 46.24 lakh crore or $65.95 Billion (at Rs 70 per Dollar), making the firm "amongst the top-5 listed companies in India by market capitalization" as per Reliance's statement.
Jio's big valuation
RIL remarked that the investment 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" and that it will accelerate "India’s all-round development, fulfilling the needs of Indian people and the Indian economy."
Mukesh Ambani, Chairman of RIL, said, "All of us at Reliance are therefore humbled by the opportunity to welcome Facebook as our long-term partner in continuing to grow and transform the digital ecosystem of India for the benefit of all Indians. The synergy between Jio and Facebook will help realise Prime Minister Shri Narendra Modi’s ‘Digital India’ Mission with its two ambitious goals — ‘Ease of Living’ and ‘Ease of Doing Business’ – for every single category of Indian people without exception. In the post-Corona era, I am confident of India’s economic recovery and resurgence in the shortest period of time. The partnership will surely make an important contribution to this transformation.”
Facebook founder and CEO Mark Zuckerberg said thanked Ambani for the partnership and stated that the firms are "committing to work together on some major projects that will open up commerce opportunities for people across India."
"India is home to the largest communities on Facebook and WhatsApp, and a lot of talented entrepreneurs. The country is in the middle of a major digital transformation and organizations like Jio have played a big part in getting hundreds of millions of Indian people and small businesses online. This is especially important right now, because small businesses are the core of every economy and they need our support. India has more than 60 million small businesses and millions of people rely on them for jobs. With communities around the world in lockdown, many of these entrepreneurs need digital tools they can rely on to find and communicate with customers and grow their businesses. This is something we can help with -- and that's why we're partnering with Jio to help people and businesses in India create new opportunities," Zuckerberg added.
Updated 08:18 IST, April 22nd 2020