Facebook gains 3% in after market hours trade on Jio deal

Shares of Facebook Inc. gained 3 per cent in after hours trade following Indian oil-to-telecom major Reliance Industry's announcement that the social media giant will invest $5.7 billion in its Jio Platforms.

The Nasdaq listed Facebook stock gained 2.55 per cent to $175.15 in the after hours trade. On Tuesday, the stick had closed down 4.17 per cent to $170.80.

Reliance Industries in a statement said Facebook will invest Rs 43,574 crore or $5.7 billion into Jio Platforms, a unit of Reliance Industries, for a 9.99 per cent stake.


Jio Platforms is a digital apps platform, separate from its telecom business by the same name. The investment will value the platform at Rs 4.62 lakh crore.

The deal is crucial for Reliance as it will help MukeshAmbani-owned company to reduce debt further and allow the Mark Zuckerberg-led company get a stronger foothold in what is the US major's largest market.

At the end of December quarter, Reliance Industries had gross debt of Rs 3,06,900 crore and cash and cash equivalents of Rs 1,53,700 crore.

Facebook also owns instant messaging service WhatsApp and photos sharing service Instagram.