What Could be the Outcome Of Facebook Buys 9.9% Jio Stakes?

Are you interested in knowing about the outcome of Facebook buying 9.9% in Jio? It’s in the air at that time that Facebook bought 9.9% stake in Reliance Jio, WhatApp to support Jio Mart.

Everybody was so much keen to know about the Jio Facebook deal. Roughly India has a population of 130 Crore, Out of which Jio has around 40 crore subscribers, and Facebook also has around 40 crore users.

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’s terms, Mark Zuckerburg Company – Facebook invested in Reliance Jio and get a hold of 9.9% Ownership right.

What’s the Purpose of this Deal?

In order to better understand the purpose or the advantages both parties would get from the 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 that takes place before confirmation of such deals and when it suggests a good synergy would be created out of the deal, only then such deals take place.

What are the Advantages Facebook & Reliance Jio Get from this Deal?

Facebook can track consumer needs by going through users’ search preferences, likes, or dislikes over Facebook. Then these platforms try to advertise users with the goods or services that they like most.

These are the features that 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 Whats 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 App 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 by introducing Reliance Mart for better trading.

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