Amazon Can Invest Rs 15,000 Crore In Airtel, Acquire 5% Stake: What Is The Reason?
The telecom war is far from over.
As per reports coming in, ecommerce giant Amazon has made plans to acquire 5% stake in telecom behemoth Airtel by investing $2 billion, or Rs 15,000 crore.
After Facebook’s investment in Jio, and Google’s plan to invest in Vodafone, this can be one of the biggest investments in telecom sector.
Amazon Plans To invest $2 Billion In Airtel
Airtel, once the biggest telecom company in India, is right now 3rd biggest telco with 30 crore subscribers.
And Amazon is world’s biggest ecommerce portal.
As per some insiders, Amazon is all set to invest $2 billion and acquire 5% stake in Airtel, at the current market rates.
Initial level talks are on, and there is no guarantee that the talks will be successful, and Airtel will get the investment.
Reacting on this, Amazon spokesperson said that their company does “not offer comments on speculation of what we may or may not do in future.”
On the other hand, Bharti Airtel, the parent company of Airtel has said that they are always looking out ways to bring the best services, content and platform to their users, and “Beyond that there is no other activity to report,”
Telecom War Heating Up: What’s Actually Happening?
Last month, Facebook and Reliance Jio joined their forces. Rs 44,000 crore was invested by Facebook into Jio, and for acquiring 9.99% stake.
Jio is right now India’s #1 telecom provider.
Last week, we reported that Google can invest an undisclosed amount, and acquire 5% stake in debt-ridden telecom company Vodafone-Idea, which is right now India’s 2nd biggest telco.
And now, Amazon is looking to enter the telecom market, by acquiring 5% stake in Airtel.
It seems that these digital behemoths: Amazon, Facebook, Google has understood that in order to win the digital and ecommerce battle, they need to control the platform as well, and for this, they need some share of the pie in the telecom market.
We will keep you updated, as more details come in.