Bharti Airtel is looking at a flurry of cash coming it's way. The telco is raising funds via a rights issue, and it has received the board’s approval for the same. This cash can help the telco in getting ahead of its competition. Airtel wouldn’t want to give up an opportunity of getting more cash. That is why if it gets a big investment from a major tech giant, its fortunes might change. Note that all of this is an opinion and based on speculation.
Bharti Airtel ‘Speculated Deal’ With Google
It is being speculated that Bharti Airtel will soon be making a deal with Google. What this deal will hold, or its information hasn’t been leaked as of yet by the speculators. But a few reports online suggest that the two companies have been in talks for a long time now. While Bharti Airtel has already clarified that the Google deal is only “media speculation” at the moment, there is a chance that this deal may happen. If there weren’t any talks going on between the companies, Bharti Airtel would have just said that “look, there’s no deal, and all reports are false”. But why would a company deny to comment by saying it's “media speculation”. This suggests that while the deal between Airtel and Google might not have concluded, the companies might be in talks with each other. This is as wild a guess as I have ever made, so I can be so wrong here, but I will take my chances.
Bharti Airtel and Google Deal, What Can The Companies Actually Work On?
For the unaware, Google has already invested a ton of money into Reliance Jio and is also working with the telco to come out with an affordable 4G handset for users in India. I don’t think the deal with Airtel might be something along the same lines. But again, anything that I think right now is pure speculation.
So what should be the deal about? I really don’t know, and there’s hardly any evidence or leaks in the market that can point us towards a singular direction.
But one thing’s for sure; Airtel would benefit a lot if this deal happens. Any successful deal might mean Airtel either getting its hands into Google’s resources or Airtel getting a ton of money from Google. Either way, Airtel will benefit a lot.
With the extra cash that it might get from Google, the company can fast-track its process of investing in the mobile networks, and that would help it in getting an edge over Jio when it comes to 5G. 5G would need much more capacity in the networks and will require a lot of investments. Thus this deal, if it happens, can be fruitful for Airtel.
Note: All the information mentioned here except for Airtel’s rights issue fundraise plan and Jio getting an investment from Google are speculations.
