A few weeks after Facebook acquired a stake in India's Reliance Jio platforms, two more US firms are reportedly reported to be interested in the Indian telecom market.
Google is considering buying a stake of about 5% in Vodafone Idea, India's second-largest telecom operator. However, there are also reports that Microsoft has made up to $2 billion in the Reliance Jio platform. According to source-based reports on the issue, Google Inc. can acquire a 5 percent stake in Vodafone Idea Ltd. Vodafone Public Limited Company Group (PLC) and Aditya Birla Group's telecom joint venture are also in a critical phase of discussions with private equity firms for possible investment. The Vodafone spokesperson did not comment to the media about the Grand Alliance, while Google also did not respond quickly to the email-composed questions.
Considering the average price of Vodafone Idea's share during the past two weeks, the group could get $101.5 million from selling a 5% stake. Significantly, the stock has declined by more than 57% in the last 12 months. Ensuring a significant deal for the current stock price can be at a significant premium.
Financial stress and interest-
Google's interest in Vodafone Idea amid cheap mobile tariffs and stiff competition with Reliance Jio Infocomm Ltd. landing in the market in September 2016 has come at a time of financial tension over the Mumbai-based company.
Investing Is Bad-
According to market experts, investing in Vodafone Idea in the fight against the Facebook-Jio alliance in the world's fastest-growing mobile market could harm the US Internet giant.
Facebook last month announced a $5.7 billion investment in Vodafone Idea's rival Jio platforms. Interestingly, Jio is the digital property of Reliance Industries Ltd. So far, telecom and internet firms were independently trying to woo the Indian data user base, but the Jio-Facebook deal has opened up avenues for strong possibilities.
While Globally Microsoft, along with Amazon Web Services, dominates the on-demand cloud computing platform and application programming interface business, in India, it will face a three-way battle, including Google Cloud.
All these providers are increasingly in the way of reaching the market of "new" businesses of digital, legacy enterprises, and the things needed to run it. A partnership with telecom can give them immediate access to millions of customers.
Vodafone Idea has to pay an outstanding adjusted gross revenue of Rs 53,000 crore in the Government of India account. It registered a loss of Rs 6,453 crore in the December quarter. Revenue swelled by 2.26% to Rs 11,089.4 crore in this period.
Status of Ebitda-
Earnings before interest, taxes, depreciation, and amortization (Ebitda), i.e., price, depreciation, and amortization (EBITDA) increased to Rs 3,420.5 crore. While EBITDA margins dropped 47 basis points to 30.84%. Vodafone Idea has not announced its March quarter earnings.
Significantly, the Indian market has emerged as one of the latest global war zones for American and Chinese companies looking for a large number of users.
These plans are-
Over the past decade, Facebook and Google have launched connectivity efforts in India to bring more people online. While Facebook continues to be an effort called Express Wi-Fi in India. Reports say Google shut down its important project that allowed millions of Indians to use mobile internet for free at more than 400 railway stations earlier this year.
Facebook CEO Mark Zuckerberg said last month that the company will work with Jio platforms to help small traders and businesses come online. Both companies have also recently started their cooperation.
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