Facebook Invests $5.7 Billion in India's Largest Telecom Operator "Jio"

The social-media giant Facebook invested $5.7 billion to acquire 10% of Jio Platforms, which owns India's largest telecom operator.

The deal could reduce the company's net debt by 12%, reducing leverage from Reliance Jio Infocomm, given the collapse in oil prices that casts doubt on the company's assets in the refinery business, controlled by India's richest man, Mukesh Ambani.

Meantime, Reliance's shares rose 10% on Wednesday following the announcement.

Through this acquisition, Facebook can have a powerful ally in India at a time when the government has turned back on foreign tech companies.

The acquisition can also help the US tech-giant bring more revenues from India through telecommunications and e-commerce businesses. India, which has more than 400 million WhatsApp users could help facebook expand its business at a time when the social network platform is banned in China.

It is noteworthy that Facebook's own plan to provide free internet in India "Free Basics" was blocked by regulators in the same year.