Google might be eyeing a deal with Vodafone Idea, share prices plunge
Google might be eyeing an opportunity to acquire a stake in debt truck telecom firm, Vodafone Idea – The Financial Times reported on 28th of May, 2020. The deal could be for a 5% stake in the recent Vodafone & Idea merger. If true it would make Google the second silicon valley giant investing in the Indian telecom industry with Facebook recently acquiring a humbling stake of 9.9% for $5.7 Billion in Reliance’s Jio platforms.
The speculated news created a strong enough buzz in the market as Vodafone-Idea shares plunged to 30 per cent in a single day before falling back to 25 per cent by the end of the day.
Google deal might be the saviour Vodafone-Idea need
It’s no news that Voda-Idea partnership has been struggling since Mukesh Ambani’s Jio has come in the Indian telecom picture. With the recent court orders coming as another colossal blow for the company, where they were ordered to pay as much as INR 54,000 crores in adjusted gross revenue (AGR) dues to the government of India.
Financial times in their report wrote, ” Google parent Alphabet has also held talks about acquiring a stake in Jio but has lagged behind its rival in securing a deal. Pursuing Vodafone Idea instead would potentially pit Google against Facebook and an increasingly dominant Jio but the company could also make multiple investments in India”.
Vodafone refused to comment on market speculation, and there has been no statement from Google’s side either.