Home / / Could Google be Vodafone Idea’s saviour?

Could Google be Vodafone Idea’s saviour?

Google is reportedly considering taking a multi billion dollar stake in Vodafone Idea

Could Google be Vodafone Idea’s saviour?

US web giant Google is exploring the possibility of acquiring a stake in cash strapped Indian telco, Vodafone Idea, according to reports in the press.

A report by news agency Reuters says that Google’s parent company, Alphabet, was exploring the possibility of acquiring a 5 per cent stake in Vodafone Idea for an unspecified amount.

The speculation comes weeks after social media giant Facebook acquired a 9.99 per cent stake in India’s biggest telco, Reliance Jio, for $5.7 billion.

The cash injection would come as a welcome reprieve for Vodafone Idea, which has seen its share price plummet since its parent companies, Vodafone India and Idea Cellular, merged in July 2018. 

At the time of the merger, Vodafone Idea was ranked as the largest mobile network operator in the country, claiming over 330 million subscribers. However, it has since relinquished that position to Reliance Jio and has been subsequently beaten into third place by Bharti Airtel.

Vodafone Idea is struggling under the weight of a mounting debt pile, which has been exacerbated by the Supreme Court’s Adjusted Growth Revenue (AGR) ruling late last year, which inflicted several billions of dollars of new debt onto the company. Since then, Vodafone Group has infused an additional $200 million into the joint venture, to help it meet its short term financial obligations.

Follow us to get the most comprehensive technology news in UAE delivered fresh from our social media accounts on Facebook, Twitter, Youtube, and listen to our Weekly Podcast. Click here to sign up for our weekly newsletter on curated technology news in the Middle East and Worldwide.

REGISTER NOW | Webinar Event | Security you can bank on – Safeguarding the Middle East’s financial sector

Presented in partnership with security and network specialist Cybereason, the second in the three part webinar series will bring together a panel of experts to discuss how banks and financial institutions are evolving their service offering while simultaneously staying one step ahead of the cyber criminals who seek to bring their operations crashing to the ground.