Discussions Underway Between Airtel and Tata Group
Bharti Airtel and Tata Group are currently engaged in discussions regarding a potential deal. The speculation surrounding this merger has now been officially confirmed by Airtel itself. In a recent exchange filing, Airtel disclosed that negotiations are ongoing for the merger of its subsidiary, Bharti Telemedia, with Tata Play’s Direct-to-Home (DTH) business. However, the company also clarified that these discussions are still in the preliminary stages. Prior to this, several media reports had hinted at the possible merger of Tata Play and Airtel Digi TV.
Airtel’s Stake in the Merged Entity
According to sources, the deal between Bharti Airtel and Tata Group is being structured through a merger swap arrangement. Post-merger, Airtel is expected to hold a controlling stake of more than 50% in the newly formed company. This strategic move will allow Airtel to expand its presence in the non-mobile segment, boosting its revenue in the digital entertainment sector. Under a non-binding agreement, Airtel’s senior management will oversee the operations of the merged company, while Tata Group will retain two board seats.
Valuation and Impact of the Merger
Reports suggest that the valuation of the combined entity could be approximately ₹7,000 crore. Notably, Disney will continue to retain its existing stake in Tata Play. Tata Sky originally launched its services in 2004 as a joint venture between Tata Sons and Rupert Murdoch’s 21st Century Fox. Later, in March 2019, Walt Disney acquired 21st Century Fox’s stake. In 2022, the company rebranded itself as Tata Play.
With this merger, Airtel will gain access to nearly 20 million households through Tata Play’s customer base. The integration will also enable bundled offerings that combine broadband, telecom, and DTH services into a single subscription plan. If the deal goes through, it will become the second-largest consolidation in the sector, following the merger of Videocon D2H and Dish TV in 2016.
This potential partnership could reshape the Indian DTH and broadband industry, offering consumers more comprehensive service options while strengthening Airtel’s position in the market.
