Google is in negotiations with Bharti Airtel to make “significant investments.” A unit of Alphabet Inc has already spent thousands of crores on Reliance Jio, a direct competitor.
According to News Sources, Google has been in ‘advanced stages of negotiations’ with Airtel for ‘almost a year,’ and a substantially significant’ agreement is on the cards.
The finer points of this relationship have been worked out by top officials from both firms. Internal and external legal teams, as well as mergers and acquisitions teams, are all involved.
Google and Airtel have not responded to requests for information.
If the acquisition goes through, Sunil Mittal will breathe a sigh of relief, as Airtel is trying to stay afloat.
Airtel’s predicament is partly owing to Ambani’s industry-wide overhaul, which included free phones and dirt-cheap Internet charges. As a result of the pressure, Vodafone and Idea decided to merge.
On Sunday, Airtel’s board of directors will meet to discuss funding alternatives. The conference is being held in view of Airtel’s current debt, which stood at about Rs 1.6 lakh crore as of June 30. The company has been unable to boost charges without restrictions, prompting it to consider alternative possibilities.
“With its competence in data analytics, Google’s involvement might turn Airtel’s balance sheet around, as well as provide strategic aid,” an analyst told TOI.
Google’s data monetization technologies may be able to assist Airtel in increasing its revenue and improving its profitability.
According to the analyst, Google must have very compelling reasons to enter Airtel, which poses’ significant dangers ‘to anyone.
“Even though it will be a limited responsibility, if something goes wrong tomorrow, your (Google’s) market confidence suffers. If Airtel is unable to move forward owing to financial challenges and begins to stutter, the business will have to settle its debts to save its reputation, “added the expert.
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