Airtel denies report of Amazon’s $2 billion deal; says no such proposal in talks

India’s No. 3 mobile phone carrier, Bharti Airtel, has clarified the news of a possible investment of $2 billion in telecom company  by e-commerce giant Amazon. The company, in its clarification sent to the stock markets, said that on June 4, 2020, there was a news report in the media that Amazon was in talks to buy a stake in Bharti Airtel with a $2 billion investment.

In this regard, it is now clarified that the company is regularly working with all digital and OTT companies. It is deeply involved with them to deliver their products, content, and services to their consumers. Besides this, there is no such stake equity proposal regarded at this stage.

The company has also stated that it is concerned with such media reports, which are published, despite timely clarifications. Such inference-based reporting may have an undue impact on share prices and, as a result, tarnish the reputation of companies. After news of the deal between Amazon and Airtel surfaced, Airtel’s share prices saw a rise of six percent.

Airtel denies the report

Apart from this, an Amazon India spokesperson said that the company does not react to speculation about what it will do now or in the future. Amazon’s stake in Airtel is being discussed at a time when Indian telecom companies are on the radar of global investors and technology giants.

Amazon has already invested around $6.5 billion in India, mainly in expanding its e-commerce service. The Seattle-based company has also increased its digital offerings in recent years. As it seeks to attract a growing number of users in the country.

During the past few weeks, Reliance Industries’ digital platform. Jio has raised billions of dollars from Facebook, KKR, Silver Lake Partners, Vista Equity Partners, General Atlantic, and Mubadala. Meanwhile, earlier news also reports mentioned that Google was acquiring up to a 5 percent stake in debt-ridden Vodafone Idea Ltd.


Post a comment