Silver Lake-Reliance Jio deal: 5 key things you need to know

After Facebook, US-based equity firm Silver Lake announces investing in Reliance’s Jio platforms.

Silver Lake to invest Rs 5,655.75 crore in Reliance’s Jio Platforms

US-based private equity firm Silver Lake will invest 5,655.75 crore in Jio platforms, said Reliance Industries Limited (RIL) and Jio Platforms Limited on Monday.

The deal comes shortly after Facebook announced investing 43,574 crore in Reliance's Jio platforms in exchange of 9.99% stake. The deal also covers WhatsApp-JioMart partnership aimed at the smaller retailers in the country.

Here are five key things you need to know about the latest Reliance Jio-Silver Lake deal.

* The investment is said to value Jio platforms at an equity value of 4.90 lakh crore and an enterprise value of 5.15 lakh crore.

*Silver Lake's investment represents a 12.5% premium to the equity of valuation of Facebook's investment last month.

 

* Morgan Stanley acted as financial advisor to Reliance Industries and AZB & Partners and Davis Polk & Wardwell acted as legal counsels.

*Silver Lake has made investments in top tech companies around the world such as Airbnb, Alibaba, Ant Financial, Alphabet's Verily and Waymo units, Dell Technologies, and Twitter among others.

*Reliance Jio in its release pointed out the cutting-edge technologies it has been working on. This includes Cloud and Edge Computing, Big Data Analytics, Artificial Intelligence, Internet of Things, Augmented and Mixed Reality and Blockchain.

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