RIL zooms more than 8 per cent as Facebook eyes Jio

Reliance Jio zooms by more than 8 per cent as Facebook eyes it

Reliance Jio seems to be very interesting for social networking giant Facebook, as market reports suggests that the latter intends to buy 10 per cent stake in Mukesh Ambani’s Jio.

The 10 per cent stake will make up to a multi-billion dollar stake in one of India’s most preferred telecom service provider. The report stated that the talks were at preliminary level and had to be halted due to the travel ban implemented across the world as a result of Coronavirus outbreak.

Reliance Jio Infocomm Limited, which is a wholly-owned subsidiary of Reliance Industries Ltd (RIL), maintains its presence across mobile telecom, home broadband and e-commerce segments. This deal if successful, will allow Facebook to penetrate into Indian digital market. With Jio already being accustomed to the complex regulatory challenges surrounding Indian digital market as well as having a greater understanding of the market; it is Facebook’s best choice.

Reliance Jio previously partnered with Microsoft in order to offer cloud computing services to businesses. Since Reliance Industries plan to become a zero-debt company, it has announced to make Jio into a separate company, which will consist of all of RIL’s digital businesses.

Reacting to the news, on Wednesday, the stock of RIL was trading at Rs 1,022, up by 8.37 per cent or Rs 78.90 per share. The 52-week high is Rs 1,617.80 and 52-week low is Rs 875.70 on BSE.