India's richest man Mukesh Ambani-owned Jio after selling a 10% stake to Facebook for $5.7 billion has now sold it's 1% stakes more. This time the buyer is Menlo Park, California-based company: private equity firm Silver Lake who is paying Jio $747 million for the deal which now values the telecom company at $65 billion.
Silver Lake has around $40 billion in combined assets and committed capital and has invested some of the big names like audio and video communication service Skype, consultancy firm Gartner, Alibaba’s Ant Financial, computer giant Dell, and Chinese ride-hailing giant Didi Chuxing. It had recently infused capital in Expedia and Airbnb.
Silver Lake co-chief executive and a partner through a statement said that Jio is one of the world’s most remarkable companies which are led by a strong and entrepreneurial management team. "They have brought extraordinary engineering capabilities to bear on bringing the power of low-cost digital services to a mass consumer and small business population. The market potential they are addressing is enormous," he said.
Mukesh Ambani, the Reliance Industries Ltd chief, talking about the deal through a statement said that Silver Lake is one of the most respected voices in technology and finance. We are excited to leverage insights from their global technology relationships for the Indian Digital Society’s transformation.”
Notably, Jio Platforms is a wholly-owned subsidiary of Reliance Industries Limited. Jio currently has over 388 million subscribers offering them telco services. It will be interesting to see how the company moves towards new heights with these investments.
Image courtesy: Jio