Google is considering investing heavily in Airtel.
Google is considering investing heavily in Airtel. The Alphabet subsidiary has already invested thousands of crores in its direct competitor, Reliance Jio. Airtel and Google have been in advanced stages of negotiations for almost a year now, and it is possible that a ‘substantially large’ deal will be struck, TOI sources have said.
Both companies’ top executives have been negotiating the finer points of the partnership together. Likewise, the companies’ legal departments as well as their mergers and acquisitions departments are involved.
No response has been received from Google or Airtel.
The deal, if approved, could relieve Sunil Mittal’s worry, as Airtel is struggling to keep its head above water.
As a result of Ambani’s move to free voice calls and dirt cheap data, Airtel finds itself in a bind. As a result, Vodafone and Idea were forced to comply The NSE will merge 1.69 percent.
An Airtel board meeting is planned for Sunday to plan fundraising options. At the end of June, Airtel’s debt amounted to nearly Rs 1.6 lakh crore. Due to a lack of freedom to increase tariffs, the telco is exploring other options. Google’s entry would provide Airtel with strategic assistance through its expertise in data analytics, an analyst told TOI. According to the analyst, when Google enters the Airtel space, it poses ‘strong risks’ for anyone.
When something goes wrong tomorrow, even if there is a limited liability, your (Google’s) credibility will be lost. As a way to save its name, Airtel will need to repay its dues if its financial pressures start to hinder its progress,” the analyst continues.
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