Market Overview

Amazon, Verizon Look To Join Facebook, Google, Intel In Indian Telco Frenzy With $4B Investment: Report

Share:
Amazon, Verizon Look To Join Facebook, Google, Intel In Indian Telco Frenzy With $4B Investment: Report

Amazon.com, Inc (NASDAQ: AMZN) and Verizon Communications Inc (NYSE: VZ) are set to resume negotiations to pick up stake in India’s Vodafone Idea Ltd for more than $4 billion, local media reported Thursday.

What Happened: The talks came to a halt as a ruling was expected from the Indian Supreme Court on staggered payments due from the Indian telecom firm, which could have led to an existential crisis for the company, Mint reported

Vodafone Idea reportedly owes the Indian government $6.87 billion in license fee, spectrum charges, interest and penalties. The company has already paid $1.07 billion.

Why It Matters: The funding holds importance for the Indian mobile phone company to pay back the government but also to upgrade its network infrastructure, Mint noted.

The move comes as United States technology giants look to be a part of the action in the growing Indian telco industry. 

In April, Facebook Inc (NASDAQ: FB) picked up a near 10% stake in Asia's richest person Mukesh Ambani's telecom company Jio Platforms for $5.7 billion. In July, Intel Corporation (NASDAQ: INTC) invested $250 million in the Reliance Industries Ltd. subsidiary. Alphabet Inc.'s (NASDAQ: GOOGL) (NASDAQ: GOOG) followed with a $4.5 billion funding later that month.

Silver Lake, KKR & Co., QUALCOMM Inc. (NASDAQ: QCOM), L Catterton, TPG Telecom Ltd (NYSE: TSLX), Abu Dhabi Investment Authority are some of the other companies that rushed to invest in Jio this year.

Amazon was also earlier reported to be picking up a 9.9% stake in Jiomart -- Jio's joint e-commerce venture with Reliance Retail.

Price Action: Amazon shares closed nearly 0.9% higher at $3,531.45 on Wednesday. On the same day, Verizon shares closed almost 2.3% higher at $60.53.

 

Related Articles (AMZN + VZ)

View Comments and Join the Discussion!

Posted-In: Jio Platforms Mukesh Ambani Reliance IndustriesNews Financing Global Tech Media Best of Benzinga

Don't Miss Any Updates!
News Directly in Your Inbox
Subscribe to:
Benzinga Premarket Activity
Get pre-market outlook, mid-day update and after-market roundup emails in your inbox.
Market in 5 Minutes
Everything you need to know about the market - quick & easy.
Fintech Focus
A daily collection of all things fintech, interesting developments and market updates.
Thank You

Thank you for subscribing! If you have any questions feel free to call us at 1-877-440-ZING or email us at vipaccounts@benzinga.com