Airtel in advanced talks to acquire Tata Play

Bharti Airtel, under the leadership of Sunil Mittal, is reportedly nearing a significant deal with Tata Group to acquire Tata Play, the country's largest DTH provider. Sources suggest that Tata Play has been facing financial challenges, and this acquisition would be a strategic move for Airtel to solidify its presence in the digital TV space, which has experienced slower growth in recent times. Airtel aims to strengthen its bundled service offerings, which could boost non-mobile revenue through convergence, according to media reports.

If finalized, this transaction would mark Tata Group's departure from the content and entertainment sectors. It would also be the second major collaboration between the two giants, following Airtel's acquisition of Tata's consumer mobility business in 2017.

The rise of OTT services, especially among urban consumers who prefer home broadband, has contributed to a decline in the DTH user base. Meanwhile, rural users are increasingly turning to the cost-effective Doordarshan Free Dish option.

Tata Sons, which holds a 70% stake in Tata Play, recently purchased a 10% stake from Singapore’s Temasek for Rs 835 crore ($100 million), bringing the company's valuation to $1 billion—down from its $3 billion pre-pandemic peak. Walt Disney, which controls the remaining 30% of Tata Play, has been seeking an exit from the TV distribution market. Though Tata had previously planned to go public with Tata Play and even filed for an IPO in 2022, the listing was postponed in August. Airtel’s expected acquisition could proceed at a similar valuation to the recent Temasek deal.

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