New Delhi: ‘Amazon.com’ is in early stage talks to buy a stake worth at least USD 2 billion in mobile operator Bharti Airtel. This is what various sources at Amazon and Bharti Airtel said Thursday. The move, if it happens will once more demonstrate the growing attraction of India’s digital economy for US tech giants.
Discussions on regarding acquisition
The planned investment, if completed, would mean Amazon acquiring a roughly five per cent stake in Airtel. It should be stated here that Airtel is India’s third-largest telecom company with more than 300 million subscribers.
The discussions between Amazon and Airtel come at a crucial time. In the recent past, global players have placed major bets on the digital arm of Reliance Industries. Incidentally Reliance Industries owns ‘Jio’. Reliance’s digital unit has raised USD 10 billion in recent weeks from Facebook, KKR and others.
Talks may fail also
However, it should be stated that the talks between Airtel and Amazon are at a preliminary stage. It may so happen that the deal may not materialise and fizzle out. Also the terms of the deal can also change. Sources said that everything is being done in a very confidential manner.
Statements of companies
An Amazon spokeswoman said the company does ‘not offer comments on speculation of what we may or may not do in future’.
Airrel said they routinely work with all digital players to bring their products, content and services to customers. “Beyond that there is no other activity to report,” the company said in a statement.
Huge investment
Amazon counts India as a crucial growth market where it has committed $6.5 billion in investments. The majority of the amount is toward expanding its e-commerce footprint.
The Seattle-based company has in recent years also expanded its digital offerings in India. Through voice-activated speakers, video streaming and cloud storage, Amazon seeks to tap a rising number of internet and smartphone users in India.
Agencies