Google has been reportedly in talks with Vodafone Idea for buying a 5 per cent stake in the second largest telecom operator in India. However, Vodafone Idea on Friday clarified with the Bombay Stock Exchange that it is evaluating various opportunities but there is no proposal before the board of the firm as yet.
According to an analyst, the Technology-Telecom business is becoming more hybrid on the back of traditional models.
“Might be worthy to note that Vodafone Idea Limited, like Bharti Airtel and Jio Platforms, has aims to expand its business beyond Connectivity and into 5 other areas including Content, Community, Commerce, Currency and Capital. We at Greyhound Research term this as, “The 6C Digital Platform Matrix”,” says Sanchit Vir Gogia, Chief Analyst, Founder & CEO of Greyhound Research in his report on the potential deal of Google with Vodafone Idea.
“Google that has been working closely with the Bharti Airtel enterprise team for a few years now. Both have invested in training Bharti Airtel’s workforce to sell Google Suite to its enterprise customers. However, the relationship has been only reasonably successful and has failed to yield exponential returns for both,” says Gogia. “Having said that, given the troubled state of affairs at Vodafone Idea Limited, Google may well end up with a sweet bargain which would be an impossible feat with Bharti Airtel. The company has known to be in a critical state since late 2019 given the need to pay additional statutory dues as per the court orders. The money coming into VIL via a stake sale to a strategic partner can go a long way in helping it tide over these uncertain times,” he adds in his report on the company blog.
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Analyst:
Sanchit Vir Gogia: Sanchit is the Chief Analyst, Founder & CEO of Greyhound Research, a Global, Award-Winning, Digital & Technology Research & Advisory firm. To read more about him, click here.
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