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The "SUPER" Deal between JIO and FACEBOOK

Updated: Apr 22

Facebook has taken a huge stake in a major Indian corporation's digital arm, as the U.S. internet giant is moving deeper into what it sees as one of the biggest growth markets

Jio Platforms has a range of brands under it including its telecommunications company Reliance Jio which, thanks to aggressive pricing, has expanded rapidly to become India's range one mobile carrier by revenue and subscriber base.













The investment gives Facebook a 9.99% stake in Jio Platforms for Rs 43,574 cr and gives it a pre-money enterprise value of $65.95 billion.


Facebook said it would collaborate with Jio to create "new ways for people and companies to function in the the digital economy more effectively."


India is essential to the WhatsApp messaging service on Facebook which has more than 400 million users in the world.


Facebook said it would collaborate with Jio to create "new ways for people and companies to function in the the digital economy more effectively."


This might include taking JioMart, Jio's small business initiative and WhatsApp together to link people to businesses and shops. The move is timely as Facebook is gearing up to launch a WhatsApp payment function in India.


Over the past few years, Facebook has tried numerous ways to gain a strong foothold in the Indian market but it has not always been successful. In 2016, a Facebook service called "Free Basics" was blocked by Indian regulators, which aimed to offer free access to popular web sites like Wikipedia.


The idea was that certain pages should not be paying the data costs for users.But that, critics said, went against the principle of "net neutrality "— the concept that when it comes to data, all sites should be treated fairly.


In the after-hours trade, Facebook shares were up 2.5 per cent.

SUPER APP

Facebook and Jio are considering the possibility of using the Facebook-owned messaging network WhatsApp and its user base in India to create a super app along the lines of the Chinese app WeChat, Back in February, WhatsApp's worldwide user base reached the two billion mark.


The two companies would put in place the requisite financing, technological expertise and domain knowledge for the project.

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