Bharti Airtel reportedly in talks to acquire loss-making Tata Play

Bharti Airtel is in discussions to acquire Tata Play, one of India’s largest DTH service providers, according to a report by The Economic Times. Tata Play, formerly known as Tata Sky, has been grappling with losses in the highly competitive DTH market which has been losing customers to OTT platforms.

Despite recent financial challenges, Tata Play remains a key player in India’s DTH industry, holding a 33% market share as of last year, according to data from market research firm Statista. Tata Sons is the primary stakeholder in the company, with a 30% share owned by the Walt Disney Company. The service was valued at approximately $3 billion before the pandemic but has since seen its valuation drop to around $1 billion.

Tata Play has faced increased competition and operational hurdles in recent years, making it a prime target for acquisition. Singapore’s investment firm Temasek Holdings, which once held a 10% stake in Tata Play, exited the business earlier this year. Tata Sons reportedly bought Temasek’s stake for $100 million in April, setting the stage for future deals, including the potential sale to Airtel.

Airtel’s potential acquisition of Tata Play comes on the heels of a significant financial move in which it made an early payment of ₹8,465 crore (approximately $1.01 billion) to partially settle spectrum dues from a 2016 auction.

The proposed acquisition would be the second major transaction between Bharti Airtel and Tata Group. In 2017, Airtel took over Tata’s consumer mobility business, a segment that had also been facing financial difficulties at the time. Should this new deal come through, Airtel’s DTH business would gain substantial market share, further consolidating its position in the industry. 

The acquisition of Tata Play would provide Airtel with access to a larger customer base and enhanced content offerings, positioning it to compete more effectively against rival services and reshape its role in the entertainment and broadcasting market, while also addressing the challenges facing traditional DTH businesses in an increasingly internet-driven world.