NAME: Facebook’s acquisition of Reliance Jio stake
LAW FIRMS: Shardul Amarchand Mangaldas, AZB & Partners
Shardul Amarchand Mangaldas - Raghubir Menon, Natashaa Shroff, Sakshi Mehra, Naval Chopra, Yaman Verma, Anuj Berry, Tejas Karia, Pavit Singh Katoch, Shashank Mishra, Shahana Chatterji, Yogesh Chande; Abhay Sharma, Rajat Bose, Gouri Puri, Shilpa Mankar Ahluwalia and Shubhangi Garg.
AZB & Partners - Ashwath Rau, Nilanjana Singh and Bharat Budholia.
JURISDICTION: US, India
PRACTICE AREAS: Corporate and M&A
INDUSTRY SECTORS: Technology and Telecommunications
Facebook’s acquisition of Reliance Jio stake is our deal of the month for April.
In a strategic move to tap into India’s internet boom, Facebook announced its purchase of a 9.9% stake in Jio Platforms for $5.7 billion. The target is the digital technology arm of conglomerate Reliance Industries, owned by Indian billionaire Mukesh Ambani. This is the largest ever foreign direct investment in a tech company to date for India.
The transaction set a new benchmark for dealmaking under challenging circumstances. Despite parts of the US and all of India being under lockdown, the mega-tech deal managed to close.
Mobile network Reliance Jio, with more than 388 million active users, falls within Reliance Industries’ portfolio of businesses. It houses multi-functional apps users can access to stream movies, read news and shop online.
Commenting on the deal, Reliance Industries’ Chairman and Managing Director Mukesh Ambani said: “The combined power of Jio's world-class digital connectivity platform and Facebook’s intimate relationship with the Indian people will offer innovative new solutions to each one of you."