After making large investments in Jio, Google is now planning to invest big money in Airtel. The companies have reportedly reached an advanced stage of discussion. It is believed that Google will make “substantial investments, running into billions of rupees”. The companies have been in talks for the past year. Notably, Airtel had a debt of nearly £16 billion in June. So if the deal between Google and Airtel materialises, it would be a huge breather for Sunil Mittal-led telecom company.
Google and Airtel did not make any formal announcements related to the supposed deal but top sources who are aware of the developments reported that the discussions are in an advanced stage.
“The entry of Google adds strength to the balance sheet of Airtel. Also, it helps the company strategically as Google brings in innovation capabilities and strength on data analytics. Google’s data monetisation is far superior to any other company in the world, and it can help Airtel monetize its data much better to improve its realisations and profitability,” a top analyst said about the Google-Airtel deal.
Google had invested £3.37 billion in Reliance industries digital subsidiary, Jio Platforms Ltd. Google currently holds a 7.73% stake in Jio Platforms. Jio is a hot property among investors, companies like Facebook have invested massive amounts in the company. Such investments have helped the company in erasing their debt ahead of the March 2021 target.
