Bharti Airtel in advanced talks with Tata Group to acquire Tata Play: Reports

New Delhi: Bharti Airtel is in the advanced negotiation stage with the Tata Group to acquire Tata Play, according to news reports. 

The move is part of Airtel’s strategy to strengthen its position in the digital TV space and to enhance its bundled services to boost non-mobile revenue through convergence.

If the deal is finalised, it will signal Tata Group’s exit from the content and entertainment industry.

This would mark the second major deal between the two business groups, following Bharti's acquisition of Tata's consumer mobility business in 2017. 

The potential acquisition of Tata Play by Bharti Airtel could have significant implications for the Indian DTH market. It could lead to further consolidation among the players, as well as increased competition in the digital TV and broadband sectors.

Tata Sons, the parent company of the conglomerate, now holds a 70% stake in Tata Play after purchasing Singapore-based Temasek Holding Pte's 10% stake for ₹835 crore ($100 million) in April. This deal values the company at $1 billion, a significant drop from its $3 billion pre-pandemic valuation.

The Walt Disney Company holds a 30% stake in Tata Play but has been looking to exit the TV distribution business after streamlining its portfolio and merging its media operations with Reliance Jio in India. Disney inherited its stake in Tata Play from Sky after its 2019 merger with Rupert Murdoch’s 21st Century Fox. Before buying out Temasek, Tata had also acquired the minority stake held by Tata Opportunities Fund in the venture.