The Competition Commission of India (CCI) has given its consent to Facebook’s and Jio Platforms’ deal of $5.7 billion. Facebook, one of the leading social media websites, has invested in the Indian Telecom network for a 9.99% stake. The acquisition takes place by Jaadhu Holdings LLC, a wholly-owned subsidiary of Facebook.
The subsidiary is a newly embodied company that was established in March 2020 under the state laws of Delaware, US. The statement announcing the partnership between these two multi-billion companies came on Wednesday, about two months after the companies signed the deal. This investment is seen as one of the biggest funding by a technology company but for a minority stake in shares. This is also one of the largest Foreign Direct Investment (FDI) in the field of technology in India.
Jio Platforms is one of the largest telecom businesses in the country. It has around 400 million subscribers throughout India. Our country, one of the fastest growing online markets, is also house to some 400 million WhatsApp users and 328 million Facebook users. After the collaboration of the companies, the reach of Reliance and Facebook will increase among the people.
Facebook and Jio Platforms will have not only a reach on social media (WhatsApp, Instagram, and Jio Chat) but also digital payments (WhatsApp Pay, Jio Money) and e-commerce websites (WhatsApp for Business, Jio Marts). The companies will also have a holding in entertainment (JioTV, JioCinema, JioSaavn) and other areas such as JioFiber, JioPhone, and Facebook Portal.
The agreement between Facebook and Jio Platforms will give strength to Facebook’s presence in the world’s rapidly growing market. Reliance Industries Limited (RIL) will benefit from this partnership in terms of making itself debt-free.
According to Facebook, India is home to small businesses, which are very important for the growth of the economy. But amid the nation-wide lockdown, they are not able to continue working. Thus, the partnership will help these entrepreneurs in growing and flourishing their business. The deal will also help to create new job opportunities in India.