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Facebook’s investment in Jio Platform, India: the big deal

Shalini Aggarwal (Management department, Chandigarh University, Mohali, India)
Anurag Pahuja (Mittal School of Business, Lovely Professional University, Phagwara, India)
Suchita Jha (Symbiosis Institute of International Business, Symbiosis International (Deemed University), Pune, India)
Madhvi Sethi (Symbiosis Institute of Business Management, Bengaluru Campus, Symbiosis International (Deemed University), Pune, India)

Publication date: 14 January 2025

Abstract

Learning outcomes

After completion of the case study, the students will be able to analyze the overall competitive environment for telecom sector in India with the use of Herfindahl–Hirschman index tool, execute the fundamental analysis of Jio Platforms Limited (JPL) company, understand the concept of net neutrality and its implications for India market, understand the concept of “Zero debt company” and its implication for companies and understand data privacy concerns.

Case overview/synopsis

In early September of 2020, Ashish Aggarwal, a businessman in the northern state of Punjab, India with his usual habit of turning the pages of newspaper on hand and sipping morning chai got excited while reading newspaper with recent investment of Meta Platforms via Facebook buying 9.99% stake in reliance JPL. He explored and saw the potential for small businesses to invest in this and earn money, as a finance-inclined individual Aggarwal thought why not invest and earn from this opportunity. So he started googling and saw all the reviews of analysts on investment site and investors predicted that the deal could be a game changer that would further transform the existing telecom and social media platforms in India. The deal would further open doors for a new market “JioMart” which could be a futuristic design for a “one-stop-shop for e-commerce, social media consumption, instant messaging, and also digital payments”. Mukesh Ambani’s intentions to make the company zero net debt company within next 18 months fascinated him too. All this made Aggarwal interested in investing in JPL on behalf of his company as this investment option was only for business investors. So he called his financial manager, Mr Anish Mahajan for discussing the issue and both started discussing what could be the future of investment, then he told Mahajan to do the complete analysis. Also, Aggarwal was perplexed about the impact that Meta’s investment in Jio would have on consumers, especially in India. How would the telecom regulatory authority in India view it? Aggarwal felt that how the telecommunication industry would plunge into disruption mode in future. What would be the competitors’ stance in India? Would it trigger other players for strategic alliances? Aggarwal was in a dilemma whether he should invest his money in JPL company or not with controversial discussion on net neutrality and data privacy concern?

Complexity academic level

This case study is suited to master degree programs.

Supplementary materials

Teaching notes are available for educators only.

Subject code

CSS 1: Accounting and Finance.

Keywords

Acknowledgements

Disclaimer. This case is written solely for educational purposes and is not intended to represent successful or unsuccessful managerial decision-making. The authors may have disguised names; financial and other recognizable information to protect confidentiality.

Citation

Aggarwal, S., Pahuja, A., Jha, S. and Sethi, M. (2025), "Facebook’s investment in Jio Platform, India: the big deal", , Vol. 15 No. 1. https://doi.org/10.1108/EEMCS-01-2024-0010

Publisher

:

Emerald Publishing Limited

Copyright © 2025, Emerald Publishing Limited

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