Facebook Buys 9.9% Stake in Jio Platforms, Will Invest Rs 43,574 Crore in India

Reliance Facebook App

Facebook-Jio Deal The transaction between Facebook and Jio Platforms is subject to regulatory approvals. The financial adviser for the deal has been Morgan Stanley.

Reliance Industries Limited (RIL), Jio Platforms Limited and Facebook announced on Wednesday that an agreement has been reached between them. Under this agreement, Facebook will invest Rs 43,574 crore in Jio Platforms. With this investment from the social media company, the pre-money enterprise value of Jio Platforms is estimated at Rs 4.62 lakh crore. Facebook is buying a 9.9% stake in Jio platforms through this investment.Reliance Jio Facebook

Regarding the deal, Reliance Industries said it is the world’s largest investment for a minority stake in a technology company and the largest foreign direct investment (FDI) in India’s technology sector. With this investment by Facebook, Jio Platforms by value has joined the top five listed companies in just three and a half years of launching commercial services in terms of market capitalization.

Mukesh Ambani, chairman and managing director of Reliance Industries, partnering with Facebook, said, “When Reliance launched Jio in 2016, we dreamed of India’s Digital Sarvodaya – India’s inclusive digital evolution. The aim was to improve the quality of life of every person in India, including India in the world’s leading digital society. On behalf of Reliance, we all welcome Facebook as a long-term partner. This partnership will bring a big change in India’s digital ecosystem and it will benefit all Indians.Reliance Jio Facebook

The transaction between Facebook and Jio Platforms is subject to regulatory approvals. The financial adviser for the deal has been Morgan Stanley. AZB & Partners and Davis Poke & Wardwell have been legal advisors to the transaction.

Commenting on the transaction, Facebook said, “This investment reflects our commitment to India, as well as our enthusiasm for the way Jio has brought an unprecedented change in the country.” In less than four years, Jio has played a big role in bringing more than 38.80 crore people online. We are committed to connecting more people with Jio.

This investment by social media company will significantly help Reliance Industries, a well-known company from oil to the telecom sector, to reduce its debt.

Lingraj Sahu
Lingraj is one of the youngest members of PhoneTalk, and a recent tech geek convert. When he's not churning out articles, you’ll find him watching sports, exploring new places, and listening to music.