Subject category:
Strategy and General Management
Published by:
Amity Research Centers
Length: 8 pages
Data source: Published sources
Abstract
On April 22nd 2020, Facebook made an announcement of investing INR435.74 billion in Mukesh Ambani led Jio Platforms Limited (Jio Platforms), for a 9.99% stake. With this investment, Facebook became the single largest minority shareholder in Jio Platforms. This deal would allow Facebook to enter India, improve the balance sheet of Reliance Industries Ltd (RIL), and allow both the companies to gain from the vast reach of each other. According to experts, the arrangement between the retail segments of RIL namely, Reliance Retail Ltd (RRL), Jio Platforms and Facebook-owned WhatsApp would help customers to access the nearest kiranas or grocery stores. This would enable supply of products and services at the customers' doorstep as per their requirements by transacting with JioMart through WhatsApp. The deal also helped Facebook to enter its name among the elite investors in India's technology platform. Apart from this, the deal was likely to help RIL and Facebook to fight with players like PhonePe, Paytm, Google Pay and Amazon Pay in the Indian digital payments platform which was projected to increase five-fold to touch USD1 trillion by 2023. However, according to analysts, this deal would bring an end to the competition in e-Commerce platform by monopolising data and would also destroy DTH and OTT platforms and other media platforms. Also, in the long run, this deal was anticipated to give a big blow to net neutrality and ultimately, pose a threat to democracy. Against this background, would the Facebook-Reliance Jio deal dominate India's digital and e-Commerce platforms and monopolise the digital ecosystem?
Teaching and learning
This item is suitable for undergraduate, postgraduate and executive education courses.Time period
The events covered by this case took place in 2020.Geographical setting
Region:
Asia
Country:
India
Featured companies
Facebook, Inc
Employees:
10000+
Type:
Public company
Industry:
Social media
Reliance Jio Infocomm Limited
Employees:
10000+
Type:
Public company
Industry:
Telecommunications
About
Abstract
On April 22nd 2020, Facebook made an announcement of investing INR435.74 billion in Mukesh Ambani led Jio Platforms Limited (Jio Platforms), for a 9.99% stake. With this investment, Facebook became the single largest minority shareholder in Jio Platforms. This deal would allow Facebook to enter India, improve the balance sheet of Reliance Industries Ltd (RIL), and allow both the companies to gain from the vast reach of each other. According to experts, the arrangement between the retail segments of RIL namely, Reliance Retail Ltd (RRL), Jio Platforms and Facebook-owned WhatsApp would help customers to access the nearest kiranas or grocery stores. This would enable supply of products and services at the customers' doorstep as per their requirements by transacting with JioMart through WhatsApp. The deal also helped Facebook to enter its name among the elite investors in India's technology platform. Apart from this, the deal was likely to help RIL and Facebook to fight with players like PhonePe, Paytm, Google Pay and Amazon Pay in the Indian digital payments platform which was projected to increase five-fold to touch USD1 trillion by 2023. However, according to analysts, this deal would bring an end to the competition in e-Commerce platform by monopolising data and would also destroy DTH and OTT platforms and other media platforms. Also, in the long run, this deal was anticipated to give a big blow to net neutrality and ultimately, pose a threat to democracy. Against this background, would the Facebook-Reliance Jio deal dominate India's digital and e-Commerce platforms and monopolise the digital ecosystem?
Teaching and learning
This item is suitable for undergraduate, postgraduate and executive education courses.Settings
Time period
The events covered by this case took place in 2020.Geographical setting
Region:
Asia
Country:
India
Featured companies
Facebook, Inc
Employees:
10000+
Type:
Public company
Industry:
Social media
Reliance Jio Infocomm Limited
Employees:
10000+
Type:
Public company
Industry:
Telecommunications