Google is investing 1 billion dollar in Indian Airtel to capture the huge market of India's 100 billion population. The US tech giants are using this money to compete with China.
This information was confirmed in a report by US financial magazine Bloomberg on Friday (January 26). Google Domain News
Under the deal, Google's parent company Alphabet will buy a 1.27 per cent stake in Bharti Airtel for 800 million. Google will pay another 300 million over the next few years for other costs, including parts.
India, Asia's third-largest economy, is increasingly becoming one of the driving forces behind Silicon Valley's growth, especially since China's recent tightening of technology. Even before Airtel, Google has invested heavily in India. They bought shares of Mukesh Ambani's Geo Platforms Limited for 4.5 billion in 2020. Google has also joined hands to create an affordable smartphone under Indian Prime Minister Narendra Modi's 'Digital India' program.
Bharti Airtel's share price has risen at least 7.8 percent since the news of Google's investment spread. Google is buying the New Delhi-based company for Rs 834 per share.
Sundar Pichai, chief executive of Google and Alphabet, said in a statement that the investment was made under the "Google for India Digitization Fund" to make smartphones more accessible, increase public support for new business models and collaborate on companies' digitalisation journey.
Google's investment will give Sunil Mehta-led Indian Airtel a chance to compete with Reliance Jio by taking the 5G plan forward. For several years in a row, Ambani's telecom company has been the number one telecom company in India.
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