This archive report was first published on 5 June 2020.
On June 5, 2020, reports emerged that Amazon is in talks to acquire a $2 billion stake in Bharti Airtel, approximately 5% of the company's current market value.
This potential investment could have a significant impact on India's digital economy and make Bharti Airtel more competitive against incumbent Reliance Jio.
However, sources close to the matter told Reuters that talks of the investment are still in the early stages, and the terms of the deal could change or the two companies may never reach an agreement.
Following the news, Bharti Airtel's share price closed at 3.8% higher.
Both Amazon and Bharti Airtel have yet to confirm the planned investment, labeling it as speculation.
“In this regard, it is clarified that the Company routinely works with all digital and OTT players and has a deep engagement with them to bring their products, content, and services for our wide customer base. Beyond that, there is, at this stage, no such proposal in consideration,” read Telecom's statement on Livemint.
Big tech companies are increasingly showing interest in the Indian e-commerce market, which is projected to grow to $150 billion by 2023. In April, Facebook invested $5.7 billion in leading telecom Reliance Jio for a 9.99% stake, and Google is in talks to acquire a 5% stake in Vodafone, the second-largest telecom operator in India.
