News By/Courtesy: Riddhima Kedia | 05 Jun 2020 17:40pm IST

HIGHLIGHTS

  • Amazon will acquire a round figure of 5% stake based on the current market value of Airtel
  • Amazon considers India as a crucial growth market where it has committed $6.5 billion investments mainly toward expanding its e-commerce footprint.
  • “The company does not offer comments on speculation of what we may or may not do in future,” said an Amazon spokeswoman.

Amazon.com, an American multinational conglomerate company based in Seattle is allegedly in talks to buy a stake worth $2 billion approximately in India operator Bharti Airtel. As per the reports, if the mutually planned investment would be executed, Amazon will acquire a round figure of 5% stake based on the current market value of Airtel. This will uplift India’s third-largest telecom company and will help them play a good fight with the leading Reliance Jio.


Some people say, “Jio has transformed itself from a pure mobile operator to a digital technology-led consumer-facing platform, and Airtel can do the same”
“Airtel is looking to play a catch-up game here, and for Amazon, it makes all the strategic directional sense for the India business,” a data analyst said.
Amazon had been mulling several investment options, including buying a stake worth up to 8-10%.


The talks between Bharti and Amazon are at its initials and the deal terms could differ. If any causality comes and they do not settle on the same term then, the companies can also look at the commercial transaction that could give Bharti’s customers cheap access to Amazon products, one of the people said.“The company does not offer comments on speculation of what we may or may not do in future,” said an Amazon spokeswoman.

Bharti said they routinely work with all digital players to bring their products, content, and services to customers. “Beyond that, there is no other activity to report,” said the company. Shares in Bharti closed 3.8% higher after rising as much as 6% on news of the Amazon talks. The discussions between Amazon and Bharti underscore the attraction of India’s digital economy for U.S. tech giants.


Jio, the digital arm of Reliance Industries raised $10 billion from global investors including Facebook as it seeks to establish itself as a one-stop digital commerce platform.
Google is also thinking about an investment in Vodafone Idea, a joint venture between Britain’s Vodafone Group Plc and India’s Idea Cellular.
Amazon considers India as a crucial growth market where it has committed $6.5 billion investments mainly toward expanding its e-commerce footprint.


"THIS ARTICLE DOES NOT INTEND TO HURT THE SENTIMENTS OF ANY INDIVIDUAL, COMMUNITY, SECT, OR RELIGION ETCETRA. THIS ARTICLE IS BASED PURELY ON THE AUTHOR'S PERSONAL VIEWS AND OPINIONS THE EXERCISE OF THE FUNDAMENTAL RIGHT GUARANTEED UNDER ARTICLE 19(1)(A) AND OTHER RELATED LAWS BEING FORCE IN INDIA FOR THE TIME BEING."

Section Editor: Pushpit Singh | 05 Jun 2020 19:53pm IST


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