After Jio, Google Will Now Invest In Airtel To Grab A Big Share Of Indian Telecom Market: Deal Size? Advantages?
The entry of Jio into the Indian telecommunication industry changed it forever. It became so powerful force that it changed the paradigm of the entire ecosystem. It forced drastic changes in the system. In 2020 it even received backing from Facebook and Google. With this shot in the arm, the company has kind of brought the market to the cusp of the duopoly. The duopoly of Jio and Airtel. And it seems like the global Giant Google wants to benefit from the competition from both the companies.
Google in talks with Airtel?
According to sources, IT Giant Google is in talks with Bharti Airtel. The Search behemoth intends to make ‘substantial investments’ in Bharti Airtel.
As per the sources, Google has been in ‘advanced stages of negotiations’ with Airtel for ‘nearly one year’ now. And there is a ‘substantially large’ probability that deal will materialize.
Internal and external legal teams, M&A teams have been involved with this deal. Once top executives from both companies collectively work out the finer aspects of this partnership, the deal will see the light of the day.
When contacted, neither Google nor Airtel responded to queries.
This deal can bring relief to Airtel
As Airtel struggling to keep its head above water, the materialization of this deal can bring a sigh of relief for Sunil Mittal, founder, and chairperson of Bharti Enterprises.
Airtel’s board will be meeting on Sunday and will plan fundraising options. The meeting has a background of Airtel’s current debt clocking in at nearly Rs 1.6 lakh crore at the end of June.
According to an Analyst, Google’s entry could turn Airtel’s balance sheet around and also lend a hand in strategic assistance with its expertise in data analytics. The analyst emphasized that Google must have ‘very strong reasons’ to enter Airtel which poses ‘strong risks’ for anyone.
“If anything goes wrong tomorrow, your (Google’s) credibility in the market goes out even though it will be limited liability. To save its name, the company will have to settle its dues in case Airtel is not able to move ahead due to financial pressures and starts slipping down,” the analyst added further.
So, if this deal really materializes, it will definitely be another water-shedding moment for the Indian telecommunication sector, won’t it?