Amazon May Invest $2 Billion For 5% Stake In Bharti Airtel, Claims Report
This is according to three sources who have information about this matter in a conversation with Reuters.
Last week we learned about Google and Microsoft eyeing to invest in Vodafone and Reliance Jio, respectively. This surely caused some ripples in raising Vodafone¡¯s stock prices.
And now, reports hint that e-commerce giant Amazon is looking to invest $2 billion in Bharti Airtel.
Reuters
This is according to three sources who have information about this matter in a conversation with Reuters. The whole thing isn¡¯t finalised yet, however, in case it does it would mean Amazon would have around a five percent stake -- looking at Airtel¡¯s current market value.
Airtel today stands as the third-largest company in the Indian telecom industry with a user base of over 300 million subscribers.
Airtel has no activity to report
In case you were ready to go invest in some Bharti Airtel stocks, you should probably hold your horses.
According to a recent report by Economic Times, Bharti Airtel has stated that "We routinely work with all digital and OTT players and have deep engagement with them to bring their products, content and services for our wide customer base. Beyond that there is no other activity to report.¡±
ET also got in touch with Amazon where a spokesperson stated that they don¡¯t offer comments on speculation stating, "We do not offer comments on speculation of what we may or may not do in future."
It is important to note that the Airtel stock ended 3.9% higher at Rs 573.15 on the Bombay Stock Exchange this Thursday.
Reuters
Amazon considers India as one of its most crucial markets, according to their CEO and world's richest man Jeff Bezos.
It has even committed to invest $6.5 billion to expand and strengthen its e-commerce network in India.
The largest telecom giant in India presently, Reliance Jio has attracted quite a lot of investments in the last one month, starting with social media giant Facebook, followed by four others (Silver Lake, Vista EP, General Atlantic and Kohlberg Kravis Roberts & Co.) that have all resulted in a total investment of around Rs 78,562 (roughly $10.3 billion) in just a few weeks.
