[Asia Economy Reporter Hyunwoo Lee] Google announced that it will make a $4 billion equity investment in GeoPlatform, an Indian digital business specialist company. Analysts interpret this as the beginning of capital movement as global IT companies turn their attention to India amid escalating US-China tensions.
According to foreign media including Bloomberg, on the 15th, Google plans to invest $4 billion (approximately 4.8 trillion KRW) to acquire a 6% stake in GeoPlatform, a subsidiary of India's Reliance Industries Group. Both parties are expected to finalize the contract within a few weeks. Earlier in April, Facebook made headlines by investing $5.7 billion to acquire a 9.99% stake in GeoPlatform.
Reliance Industries, the parent company of GeoPlatform, has sold 25.2% of GeoPlatform's shares to global IT companies such as Facebook, Qualcomm, and Intel, reportedly securing $65 billion in investment funds. GeoPlatform is a digital business specialist company that oversees Reliance Jio, India's largest telecommunications company, and JioMart, an online distribution service provider. Reliance Jio is known to have 309 million subscribers.
The fact that IT giant companies are simultaneously investing in Indian digital companies is interpreted as a means to secure a foothold in the rapidly growing Indian digital market while avoiding the escalating US-China conflict and US government sanctions against China. According to a survey conducted by the US Chamber of Commerce targeting 183 US companies, 76% of respondents expressed concerns about the Hong Kong Security Law, and 48% said they are considering withdrawing from China in the mid to long term.
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