Amazon: Nosing into Telco Land
June 25, 2020
Amazon wants to expand into Asia, but they are avoiding the Chinese hot market and concentrating on India. India’s Zee News explains, “Amazon In Initial Talks To Buy $2 Billion Stake In Bharti Airtel” and Amazon would then own a 5% stake in the company. It would also augment India’s third largest telecommunication company and give them more power to compete against its rivals.
The five percent stake is not the only option Amazon has considered. They also spoke with Bharti Airtel about deals that included stakes worth between 8-10%. Nothing is definitive yet because the deal is in the preliminary stages:
“The talks between Bharti and Amazon are at an early stage and the deal terms could change, or an agreement may not be reached, said two of the three people, all of whom declined to be identified because the discussions are confidential. If talks to buy a stake fail, the companies could also look at a commercial transaction that could give Bharti`s customers cheap access to Amazon products, one of the people said.”
Nothing else is known about the suspected plans, but Bharti Airtel shares rose based on them. While China remains in hot water because of COVID-19, India has come more into focus for technology development. There has always been interest in India, but the subcontinent remains fairly neutral compared to its northern neighbor.
Whitney Grace, June 24, 2020
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