Facebook invested 5.7 billion dollars to get a stake of 9.9% in Reliance Jio. It is considered as largest Foreign Direct Investment (FDI) in India. In layman terms, Mark Zuckerburg Company that is Facebook invested in Reliance Jio and get a hold of 9.9% Ownership right.
So, what’s the purpose of this deal or the advantages both parties would be getting by coming together?
To better understand the advantages of Jio Facebook Deal we need to consider some basic points of Facebook, Instagram, Whatsapp, Reliance Industries, Reliance Jio, and Reliance Retail. i.e., so many big entities coming together.
a. The Facebook subsidiary is what app, Instagram.
b. Reliance industries limited owns Reliance Jio and Reliance retail ltd.
Now, these two big entities or Business Giants came into an agreement. Of course, there’s always a very strong motive behind these deals as when such big Giants come together. There’s always a lot of thought process behind al these deals and when it suggests a good synergy would be created out of the deal, only then such deals take place.
Facebook can track consumer needs by going through Users’ search preferences, likes, or dislikes over Facebook. Now what these platforms do, they try to advertise users with the goods or services they like most.
This features Jio lacks, Reliance Jio has subscribers but doesn’t own the technology to study users’ likes or dislikes. Now Facebook could get the following benefit through this deal:
1. Free internet surfing or better connectivity of Facebook or what’s app for Jio Users. – Facebook tried to come into India with this offer in India in 2015 by coming up that no data would be charged for surfing of Facebook site. But general internet guidelines don’t support that at that time.
2. Whats is mostly used by everyone in India. So another advantage could be they could give local retailers to register themselves and then supply the good in the local area also. Later they can make this happen through introducing Reliance Mart for better trading.