Google to Purchase 5% Stake in Vodafone-Idea
Search giant Google to Purchase 5% Stake in Vodafone-Idea telecom- If believes on the news, the search giant Google is looking forward to invest in the telecom major. Internet giant will invest in the company for a 5% equity stake, the Financial Times reported citing unidentified sources.
The investment would help Vodafone-Idea to stay in the telecom market, as the company tries to stay on its feet after the Supreme Court refused to budge on the Adjusted Gross Revenue (AGR) dues. The deal will help Google to compete with Facebook in the India’s growing mobile internet market. Facebook, earlier this month, agreed to invest Rs 43,574 crore in Mukesh Ambani’s Jio Platforms for a 10% stake.
The report said Google is considering to pick a 5% stake in Vodafone-Idea, which is a joint venture between United Kingdom-based Vodafone and India’s Aditya Birla Group. However, the talks are said to be in a very early stage. According to various reports, Google’s parent company Alphabet has also considered investing in Jio platforms.
Vodafone-Idea shares have fallen 56% over the last one year. Vodafone and Idea, has been asked to pay Rs 58,000 crore by the Department of Telecommunications. The firm’s self-assessment puts the AGR dues figures at Rs 21,533 crore of which the company had paid Rs 6,500 crore till the middle of March.
In a three-way battle where Vodafone-Idea faces stiff competition from Bharti Airtel and Reliance Jio, the company has dropped to the third spot.
Earlier, Vodafone has refused to inject more funds into the Indian venture while also writing-off the entire value of its Vodafone Idea stake.