Global Tech Giant, Google has initiated exploratory discussions to acquire a stake in the struggling Indian Telecom Company Vodafone Idea. This is a big step that Google is taking in its efforts to gain inroads into the Indian Telecom Market. Earlier reports coming in suggest that Google is eyeing a 5% stake in Vodafone Idea.
What this means:
With this stake purchase, Google locks horns with Facebook and the market-dominating Company Jio, for supremacy in the highly appealing and fast-growing Indian Telecom Market. This move could also mean that Google would further try to cement its presence in India with more multiple investments. But the news assumes more importance to the struggling Company Vodafone Idea. An investment from Google would provide the Company a major lifeline at a time when it has been ordered by the Supreme Court to pay Rs 53,000 crore adjusted gross revenues dues to the government. Though UK based Vodafone PLC acknowledges the grim situation Vodafone Idea is in, the Company had refused to inject more equity, having booked billions of pounds of losses related to its Indian foray. At this point in time, Google’s interest in the Vodafone Idea would come as a major breather for the telecom player. The deal is still in its early stage and changes in terms of the final deal can also be expected as a possibility.