Google is planning to buy 5 % stake in Vodafone Idea, which is jointly owned by Vodafone Plc and Aditya Birla. As reported by IANS, a 5 % stake in Vodafone Idea will help Google to compete with Facebook, which has recently acquired a 9.99 % stake in Jio platforms. Not only this, but the investment will also help Vodafone Idea which is facing massive financial burden. Another Report by Financial Times claimed that the process is in the earliest stage and Google might acquire 5 % stake in Vodafone Idea.
Google Might Make Multiple Investments in India: FT Report
Since Facebook has acquired a 9.99 % stake in Jio platforms, Google has lagged in the investment process. As per the FT report, Google’s parent company Alphabet was planning to acquire a stake in Jio Platforms. However, Alphabet lagged and the investment is still under process. It is expected that Google will compete against Facebook and powerful Jio by eyeing stake in Vodafone Idea. Not only this, but Google might also make multiple investments in India to maintain competition in the market and increase its user base in India. Prabhu Ram, who is the Head-Industry Intelligence Group, CMR stated that Google’s investment in Vodafone Idea might be a take on the Facebook-backed Jio behemoth. Also, the move by Google will help Vodafone Idea to get back in the market competition and reduce its financial liabilities.
Vodafone Idea Have Massive AGR Dues
The verdict of Supreme Court on AGR dues created massive trouble for Vodafone Idea. The supreme bench denied the AGR estimates which were calculated by telco giant and directed all the telcos to clear AGR dues as per DoT estimates. As per DoT estimates, Vodafone Idea was the most affected telco. The telco giant has to clear a whopping amount of Rs 53,000 crore towards AGR dues. However, as a significant aid to telecom operators, DoT asked the Supreme bench of India for a 20-year window for payment of AGR dues. Even though Vodafone Idea is facing financial distress, it has been clearing off its AGR liability. The telco giant has cleared its self-assessed principal amount which stands at Rs 6,854 crore. If Google acquires a stake in Vodafone Idea, it will be a big relief for the telco giant as the investment will remove the financial distress.