[DigitalOne]

Google to invest Rs 33,737 crore (USD 4.5 billion) for a 7.7 per cent stake in Jio Platforms

Source

Google's related announcement on their blog

Google and Jio Platforms have entered into a commercial agreement to jointly develop an entry-level affordable smartphone with optimizations to the Android operating system and the Play Store. Together we are excited to rethink, from the ground up, how millions of users in India can become owners of smartphones.

Not sure if any other company has ownership stakes from both Google and Facebook. Big losers in this are going to be Airtel and Vodafone-Idea.

Also, likely losers would be Flipkart-Walmart and Amazon (to lesser extent). Jio-Android phones would have Jiomart as one of the unremovable apps

[ValarMorghulis]

The recent Google investment puts Jio platforms' valuation greater Infosys! So effectively, Jio Platforms is now 5th largest company in valuation after: TCS, Reliance, HDFC Bank, and HDFC.
Meanwhile, Jio has launched JioGlass which are augmented reality based smart glasses. Link.

Interesting times ahead.

[srishiva]

They are also covered well on the wireless infrastructure side. They might start using their own network equipment. Although it doesnt augur well for the R&D unit to sell to others.

I think phones are what bring a huge revenue and its a welcome step for an Indian company. I dont understand why it has to be a pared down version of android. Hardware is not that costly to do that.

[GTO]

The Times Of India newsletter simplifies one part of the transaction:

Ambani, who's looking to enter the entry-level smartphone market, making 4G and 5G compatible devices "for a fraction of its current cost", said the tie up with Google was geared towards jointly developing Android-based smartphone operating system. Reliance Jio, which currently has 387 million subscribers, is looking to increase it to 500 million in the next three years. That the focus of the company is now completely on its telecom and digital business can be gauged from the fact that almost the entire address of Ambani was devoted to that, with passing mention of its oil business. In fact, Ambani admitted to a delay in the $15 billion investment by Saudi Aramco into its oil business. Also, he confirmed that going forward, Jio Platforms will only look at strategic investors and not solely financial investors.

[Aditya]

Google to invest Rs 33,737 crore (USD 4.5 billion) for a 7.7 per cent stake in Jio Platforms - Posts moved to a new thread.

[ValarMorghulis]

The Reliance share price has also nearly doubled since Mar 2020, when it was Rs. 965 and is currently trading at Rs. 1837!!

The question is: Is it overvalued or is there potential to break new high?

[HKap]

Originally Posted by ValarMorghulis

The Reliance share price has also nearly doubled since Mar 2020, when it was Rs. 965 and is currently trading at Rs. 1837!!

The question is: Is it overvalued or is there potential to break new high?

In the long run, I think this stock has tremendous potential. Maybe there will be small correction in the short term (no way is it going back to 900) to pre-covid levels but the upside seems to be huge. I won't be surprised if this doubles in the next 3-5 years. They've got access to almost 400 million mobile subscribers. They're now expanding their broadband, jio TV and retail business. Not to mention their low cost phones with Android. Now imagine the recurring revenue potential from a 400 million and growing subscriber base. All they have to do is print their own currency and they become a country in themselves J/K. The valuations are cheap right now. Also, I won't be surprised if they start investing in alternate fuels as well.

Eventually Jio will spin out to become its own stock.