(Bloomberg) – Google is in advanced talks to buy a $ 4 billion stake in Indian billionaire Mukesh Ambani’s tech company, people familiar with the matter said, seeking to join rival Facebook Inc. in pursuit of growth. in a promising internet market.
The Mountain View, California-based titan has been discussing the investment in Reliance Industries Ltd.’s digital arm, Jio Platforms Ltd., the people said, asking not to be identified because the information is private. An announcement could come as soon as the next few weeks, according to people.
Jio is at the center of the Indian tycoon’s ambition to transform his energy conglomerate into a local tech giant, somewhat akin to China’s Alibaba Group Holding Ltd. The company has become a magnet for Silicon Valley investors, attracting nearly $ 16 billion from Facebook to KKR & Co. in the past three months.
If the talks with Google result in a deal, that would further polish Jio’s credentials in his bid to change online retail, content streaming, digital payments, education and healthcare in a market of more than a billion people.
Global technology leaders, from Facebook to Intel Corp., are looking for multiple ways to take a slice of the action in the South Asian country, where millions of Internet users are added for the first time each month. Jio Platforms, which has nearly 400 million users through its wireless network, offers the largest user base that increasingly buy products online and download music and videos, using cheap smartphones and data services themselves at a price reduced from Jio.
Read more: Facebook Helps Asia’s Richest Man Eliminate Oil Dependence
An arm of Qualcomm Inc. was the last on Jio’s growing list of high-profile investors, which also include Intel Capital, Silver Lake Partners and Mubadala Investment Co. As of July 12, Reliance had sold 25.2%. de Jio, valuing the company at $ 65 billion.
Here is a list of investors on Jio Platforms:
Details of the possible Google deal could change, and negotiations could still be delayed or crumbled, the people said. Representatives of Google and Reliance did not immediately respond to requests for comment.
The Jio investment chain has spurred a rebound in parent company Reliance. The stock has more than doubled from its March 23 low, rewarding investors who will listen to Ambani, 63, setting out the roadmap for the group’s future at the annual shareholder meeting on Wednesday.
The increase in stocks has also helped Ambani, the richest man in Asia, enter the exclusive club of the 10 richest people in the world. With a net worth of $ 72.4 billion, according to the Bloomberg Billionaires Index, he has surpassed Elon Musk, Google co-founders Larry Page and Sergey Brin, and legendary investor Warren Buffett in sixth place on the list.
Like Facebook, Google is expanding its presence in the Indian market. On Monday, the company said it plans to spend $ 10 billion over the next five to seven years to help accelerate the adoption of digital technologies in the country. The amount could be used for partnerships and capital investments, among others, he said.
Sundar Pichai, who was born in the country and is now CEO of Google’s parent company Alphabet Inc., said the coronavirus outbreak has made clear the importance of technology for doing business and connecting with friends and family.
Founded in 1998 in Silicon Valley, Google entered India six years later with offices in Bangalore and Hyderabad. Since then, the Indian business has become one of the most important in the company. The country now has more than 500 million internet users, second only to China, with growth that has attracted all of the American tech giants.
Over the past decade, Google has successfully launched several products in India, including a Google Internet Saathi service to bring rural women online and its popular Google Pay service.
(Updates with more background on Ambani’s plans)
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