Last week I wrote about Reliance Jio and Facebook, from the point of view of what is in it for each player, if a transaction goes through. If you haven’t read that, I suggest you do to get context.
Earlier this morning the transaction was announced. From Jio’s media release:
Reliance Industries Limited, Jio Platforms Limited and Facebook Inc today announced the signing of binding agreements for an investment of Rs 43,574 crore by Facebook into Jio Platforms. This investment by Facebook values Jio Platforms at Rs 4.62 lakh crore pre-money enterprise value ($65.95 billion), assuming a conversion rate of Rs 70 to a US dollar. Facebook’s investment will translate into a 9.99% equity stake in Jio Platforms on a fully diluted basis.
Money coming in is good for Reliance, and will help reduce its indebtedness. Something that’s been a lingering problem for the company.
Reliance will use Rs 28,574