Facebook bets on India with $5.7 billion Reliance deal

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Facebook bets on India with $5.7 billion Reliance deal

On Wednesday, the 22nd of April 2020, the Menlo Park, CA-based social networking titan, Facebook Inc. having had a revenue of $70.7 billion as of December 31st, 2019, had agreed to spend as much as $5.7 billion in order to purchase 9.99 per cent stakes in Reliance Industries’ digital wing, as the social networking behemoth employing more than 45,000 workers across the globe has been looking to unfurl wide-ranging services for a swathe of small business owners in India by manoeuvring WhatsApp’s en masse reach in the world’s second-most populous country.

In point of fact, Facebook Inc.’s latest deal to purchase 9.99 per cent stakes in Reliance’s digital arm, has been its largest since the $22 billion buyout deal for WhatsApp back in the 2014, while the latest deal would provide Facebook Inc.

with an access in to Reliance Industries’ Jio platform, the digital wing of Mumbai-based Indian multinational conglomerate that harbours Reliance Telecom, Jio Infocomm, news services, movie and music app alongside a many more.

Aside from that, followed by the unveiling of Wednesday’s (April 22nd) deal, which happened to be the eighth largest in Asia this year, Facebook Inc.

and Reliance Industries were quoted saying in a joint statement on Wednesday (April 22nd) that Facebook Inc.’s digital venture in India would be based on its 400 million WhatsApp users in the country and would ramp up growth momentum of Jio’s newly introduced retail venture JioMart.