Google Might Team Up with Vodafone Idea to Pit Against Facebook-Jio Behemoth

Google’s parent company Alphabet was trying to acquire a stake in Jio platforms, but it lagged behind its rival in securing a deal

google-might-team-up-vodafone-idea

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.

Read more on:

Shrijan loves the process of creating content in various verticals, whether it be words, sounds or videos. He's also inclined towards digital marketing and tech industry developments. The art of creation always intrigues his interest.

15
Leave a Reply

avatar
Photo and Image Files
 
 
 
8 Comment threads
7 Thread replies
1 Followers
 
Most reacted comment
Hottest comment thread
13 Comment authors
Kiran Fernandes | GoaVIL LOVERAsisaketChetan Recent comment authors
newest oldest most voted
DGupta
DGupta

Vodafone Idea does not have the network to become a serious digital competitor to Jio or Airtel. So in addition to settling the obscenely high debt and paying AGR dues, it needs billions in network investment to become competitive.

Google can buy the whole Vodafone Idea for hardly anything from the bankers via bankruptcy. Buying a 5% stake in a nearly dead, heavily indebted and loss making firm makes no sense. The company is basically worth zero now.

City
Mumbai
Chetan
Chetan

This is rumours and nothing else. Firstly if Google has to pick up stake it will have to be at Enterprise value and not at market cap. 5% market cap will give only 1000 crore at current price which is peanut for voda idea debt and for Google too. Plus therr r better bet which is Airtel to invest rather sinking ship voda idea which doest have any edge over other operators

Prithvi
Prithvi

With big foreign entrants like Google, FB becoming stake holders, we need to keep strict vigilance & a strict standard on privacy, security violations on citizen’s rights. The Chinese pandora’s box of ulterior motives is out in the open but these chaps are way more dangerous.

Recent Posts

WhatsApp Business Gets New Updates: QR Code, Animated Stickers and More

WhatsApp is easily one of the most recognised and widely used social media platforms in the world. For the unaware,...

BSNL Introduces Prepaid Plan Queuing Facility to Rival Private Telcos

One thing that prepaid customers don’t like is the reminder of their plan ending soon. If you are recharging for...

OxygenOS Open Beta 6 for OnePlus 7T Series Optimises Auto-Brightness; Security Patch Updated

OnePlus on Thursday rolled out Open Beta 6 for the OnePlus 7T and the OnePlus 7T Pro. The Open Beta...