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Mukesh Ambani has reclaimed the title of Asia's richest person after Jio - Facebook deal

Mukesh Ambani has become the richest person in Asia after a deal with Mark Zuckerberg Facebook Inc.

Ambani's fortune rose about $ 4.7 billion to $ 49.2 billion on Wednesday after Reliance Industries Limited gained 10%. According to the Bloomberg Billionaires Index, the jump put Ambani  about $ 3.2 billion ahead of Chinese Jack Ma. The rating is updated after the close of each  trading day in the U.S

Facebook Inc. will invest $ 5.7 billion in the biggest deal from U.S. social-networking giant since the purchase of  WhatsApp in 2014, as it seeks a wider foothold in its largest global market. The Mumbai-based company said in a statement on Wednesday that the US company will buy approximately 10% of Jio  platforms that combine digital apps and a wireless platform under one umbrella.

As of Wednesday, Ambani, the world's largest oil refinery, had declined by $ 14 billion on the index in 2020. Alibaba Holding Group Ltd’s Ma, whose Foundation this week donated 100 million masks to the World Health Organization to fight the COVID 19 pandemic, nearly lost $ 1 billion through Tuesday.

"At the core of our partnership is the commitment that Mark Zuckerberg, Facebook founder, and I share for the global digital transformation of India," Ambani said in an online video posted on Jio's Facebook page. Facebook’s brands have become household names in India. "WhatsApp, in particular, has entered the daily vocabulary of our people in 23 official languages of India. "

 

Partnering with Jio will allow Zuckerberg to accelerate its expansion into a country that is rapidly embracing online payment and e-commerce as more people get smartphones. Jio Infocomm quickly moved into a position of dominance by offering free plans and undercutting competitors in the wireless market.

With 500 million internet users, South Asia is a major marketplace for the world's largest technology companies, including Amazon.com Inc., Apple Inc. , Microsoft Corp. and  Alphabet Inc.’s Google.  In India, Facebook has about 250 million users, while WhatsApp has more than 400 million users.

This should help Jio increase its reach, according to James Crabtree, author of "Billionaire Raj," book on the country’s wealthiest people.

Source: Financial Express, Money Control, Economics Times

Also Read: How Jio - Facebook deal will impact big market players of telecom industry

 

 

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