- Amazon.com, Inc. (NASDAQ: AMZN) is reportedly in early-stage talks to buy a $2 billion stake in Bharti Airtel Limited (NSE: BHARTIARTL)
Amazon.com, Inc. (NASDAQ: AMZN) is reportedly in early-stage talks to buy a $2 billion stake in Indian mobile operator company Bharti Airtel Limited (NSE: BHARTIARTL), according to sources with Reuters. If this investment is completed, then it would mean that Amazon would gain about a 5% stake based on Bharti’s market value. And it would also give Bharti Airtel a boost as it competes against Reliance Jio.
“Jio has transformed itself from a pure mobile operator to a digital technology-led consumer-facing platform, and Airtel can do the same,” said one of Reuters’ sources. “Airtel is looking to play a catch-up game here, and for Amazon it makes all the strategic directional sense for the India business.”
Amazon could potentially invest in a stake worth up to 8% to 10% said another Reuters source. While these talks are at the early stage, the terms are subject to change or an agreement could fall through altogether.
Even if Amazon decides not to buy a stake, the two companies could partner on a commercial transaction that would give Bharti’s customers cheaper access to Amazon products.
The digital economy in India has been attracting a lot of attention from tech companies and private equity firms in the last few months. In the past six weeks alone, Reliance Industries’ Jio raised $10 billion from Facebook, Silver Lake, Vista Equity, and KKR. And Google is also reportedly looking to invest in Vodafone Idea — which is a joint venture between Vodafone Group Plc and India-based Idea Cellular.
Read More on Pulse 2.0:
– Facebook Is Investing $5.7 Billion In India-Based Jio
– Silver Lake Investing $747 Million In Jio
– Vista Equity Partners Buying 2.3% Stake In Jio Platforms For About $1.5 Billion
– Jio Platforms Now Valued At About $68 Billion Following General Atlantic Investment
– KKR To Invest $1.5 Billion In Jio Platforms
