After the startups, the opportunities of the Indian market could push Facebook to invest billions of dollars in the first telecom operator in the region.
India is Facebook's largest market. Within the South Asian country, Mark Zuckerberg's firm has more than 400 million users on its various applications, notably WhatsApp, with 250,000 contacts. Nothing very surprising when she finds great opportunities there. For several years, Facebook has been investing part of its acquisition strategy, with promising local startups.
A new milestone has just been crossed. According to the Financial Times , Facebook has gone much further in recent months. Discussions with telecom operator Reliance Jio, valued at no less than $ 60 billion, would have helped spark talks for a potential 10% acquisition of the company's shares.
10% of shares would correspond to "several billion dollars", according to the London newspaper. If for the moment the talks are at a standstill - because of the coronavirus epidemic - they show the price that Facebook would be willing to put to integrate into local opportunities.
A year ago, TechCrunch asked Ajit Mohan, vice president and general manager of Facebook India, about the interest of the Californian giant in the local market. More than ever, Facebook was looking to India. "Wherever we think there are opportunities beyond the work we do today, we are open to exploring new investment deals," he said.
But, unlike previous capital injected into startups such as the Meesho platform or the Unacademy learning service, Facebook is targeting a juggernaut, by focusing on Reliance Jio. His arrival on the market of telecom operators in 2016 was a tsunami: thanks to the investments of its creator, Mukesh Ambani (the richest man in the country), the company had landed with an ultra-competitive offer, offering a period of six months free for calls and 4G data. 370 million Indians have become customers.
Facebook has long sought to become a true internet service provider in India. In 2016, the digital giant had to drop "Free Basics", which had been accused by the authorities for suspected breaches of the rules of net neutrality. The idea of joining the management of Reliance Jio would be a way for him to be able to come back in force, and seize the opportunities.
For the time being, however, the discussions seem to be at a standstill. If the Financial Times revealed the affair, it also marked the rupture of ties, while the unstable situation linked to the coronavirus epidemic begins to affect the country. So far, 400 positive test cases have been identified, and 9 people have died. The fears are likely to continue, while the scale of the consequences could be colossal, in a country which does not have enough hospitals for its population.
India is Facebook's largest market. Within the South Asian country, Mark Zuckerberg's firm has more than 400 million users on its various applications, notably WhatsApp, with 250,000 contacts. Nothing very surprising when she finds great opportunities there. For several years, Facebook has been investing part of its acquisition strategy, with promising local startups.
A new milestone has just been crossed. According to the Financial Times , Facebook has gone much further in recent months. Discussions with telecom operator Reliance Jio, valued at no less than $ 60 billion, would have helped spark talks for a potential 10% acquisition of the company's shares.
"Wherever there are opportunities"
10% of shares would correspond to "several billion dollars", according to the London newspaper. If for the moment the talks are at a standstill - because of the coronavirus epidemic - they show the price that Facebook would be willing to put to integrate into local opportunities.
A year ago, TechCrunch asked Ajit Mohan, vice president and general manager of Facebook India, about the interest of the Californian giant in the local market. More than ever, Facebook was looking to India. "Wherever we think there are opportunities beyond the work we do today, we are open to exploring new investment deals," he said.
But, unlike previous capital injected into startups such as the Meesho platform or the Unacademy learning service, Facebook is targeting a juggernaut, by focusing on Reliance Jio. His arrival on the market of telecom operators in 2016 was a tsunami: thanks to the investments of its creator, Mukesh Ambani (the richest man in the country), the company had landed with an ultra-competitive offer, offering a period of six months free for calls and 4G data. 370 million Indians have become customers.
A fantasy spread by the coronavirus
Facebook has long sought to become a true internet service provider in India. In 2016, the digital giant had to drop "Free Basics", which had been accused by the authorities for suspected breaches of the rules of net neutrality. The idea of joining the management of Reliance Jio would be a way for him to be able to come back in force, and seize the opportunities.
For the time being, however, the discussions seem to be at a standstill. If the Financial Times revealed the affair, it also marked the rupture of ties, while the unstable situation linked to the coronavirus epidemic begins to affect the country. So far, 400 positive test cases have been identified, and 9 people have died. The fears are likely to continue, while the scale of the consequences could be colossal, in a country which does not have enough hospitals for its population.