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Facebook will invest 43,574 crores in Jio for 9.99% stake

Facebook will invest 43,574 crores in Jio for 9.99% stake

Facebook will invest 43,574 crores in Jio for 9.99% stake

Social media giant Facebook has on Wednesday signed a $ 5.7 billion (Rs 43,574) crore investment to buy a 10 per cent stake in Reliance Industries group company Jio Platforms Ltd, lead by Mukesh Ambani. The companies announced it on Wednesday.

The deal will help Reliance Industries Group reduce its debt burden and strengthen Facebook’s position in India. For this, India is also the largest market in terms of user base.

“Today we are announcing an investment of Rs 43,574 crore (US $ 5.7 billion) in Reliance Industries Ltd’s Jio Platforms Ltd, which will make Facebook its largest minority shareholder,” said a statement from Reliance. Reliance said that Jio Platforms were valued at Rs 4.62 lakh crore in Facebook’s investment.

Jio Platforms Limited holds 100% stake in Reliance Industries telecom network Jio. The statement said that Facebook will hold 9.99 percent stake in Jio Platforms.

Facebook will invest 43,574 crores in Jio for 9.99% stake
Facebook will invest 43,574 crores in Jio for 9.99% stake

Jio Platforms is a wholly owned subsidiary of Reliance Industries Limited (RIL), which provides a wide range of digital services. Its number of customers is more than 38.8 crore.

The deal was signed with Facebook as part of RIL’s efforts to reduce its debt. For this, RIL is looking for strategic partnerships in its businesses.

The group is also in talks with Saudi Aramco to sell a 20 percent stake in its oil-chemicals business. The group has set a target of becoming debt free by next year.

Google was also being negotiated for a stake in Jio, but the outcome of those conversations is not known at the moment. The latest deal is beneficial for both Jio and Facebook as India is the second largest internet market in the world after China.

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