Bharti Airtel in final stages of Tata Play acquisition: Reports

Bharti Airtel, led by Sunil Mittal, is reportedly in advanced talks with Tata Group to acquire Tata Play, India’s largest DTH provider, which has been facing financial difficulties, according to sources. The move is part of Airtel's strategy to strengthen its position in the digital TV market, which has seen slowed growth. The acquisition is also expected to bolster Airtel's bundled offerings, helping to increase its non-mobile revenue through service convergence, as reported by the Economic Times.

If the deal goes through, it will mark Tata Group’s exit from the content and entertainment space. This would be the second major transaction between Bharti Airtel and Tata, following Airtel’s acquisition of Tata’s struggling consumer mobility business in 2017.

The shift toward over-the-top (OTT) streaming services, especially among tier 1 and tier 2 users opting for home broadband, has led to a decline in DTH subscribers. Meanwhile, rural users are increasingly switching to Doordarshan's Free Dish as a more affordable option.

Tata Sons, holding 70% of Tata Play, acquired Singapore firm Temasek's 10% stake in April for Rs 835 crore ($100 million), valuing the company at $1 billion, a drop from its pre-pandemic $3 billion valuation. Walt Disney, which owns 30% of Tata Play, has been looking to exit the TV distribution business. While Tata had planned to list Tata Play and filed IPO documents in 2022, the listing was put on hold in August. Airtel is expected to acquire Tata Play at a similar valuation to that of Temasek deal.