Airtel Confirms Talks with Tata Group for DTH Merger

Bharti Airtel and Tata Play in Advanced Discussions for Merger of DTH Operations

Bharti Airtel has officially confirmed that it is in talks with the Tata Group regarding a potential merger of Tata Play’s direct-to-home (DTH) business with its DTH arm, Bharti Telemedia Ltd. The confirmation came via an exchange filing on February 26, following reports that the two companies were nearing a deal.

Highlights of the Potential Merger

1. Merger Structure

   • The deal is likely to be structured as a merger swap, with Airtel holding over 50% stake in the combined entity.
   • Tata Group is expected to retain board representation, with at least two seats.

2. Growth and Market Impact

   • Airtel will gain access to nearly 20 million homes via Tata Play’s subscriber base, boosting its DTH revenue and customer base.
   • The merger would enable bundled services, combining DTH, broadband, and telecom plans into a single subscription package, enhancing customer retention and growth in the non-mobile segment.

3. Valuation & Management Control

   • The merged entity’s operations are reportedly valued at ₹7,000 crore.
   • The entity is likely to be run by Airtel’s senior management, though Tata would retain some influence.

4. Disney’s Stake in the Merged Entity

   • Disney, which acquired 21st Century Fox’s stake in Tata Play in 2019, will continue to hold shares in the combined entity.

Industry Significance: Second Major DTH Merger After Dish TV & Videocon d2h

If completed, the Airtel-Tata Play merger will mark the second major consolidation in India’s DTH industry, following the 2016 merger of Videocon d2h and Dish TV. The deal could reshape the DTH and broadband market, intensifying competition with Reliance Jio’s JioFiber and other service providers.

Tata Play’s Evolution & Strategic Importance

• Founded in 2004 as Tata Sky, a joint venture between Tata Sons and 21st Century Fox.
• Rebranded as Tata Play in 2022, reflecting its expansion beyond DTH into OTT aggregation and broadband services.

What’s Next?

As the discussions remain at an exploratory stage, further developments on the final structure, regulatory approvals, and shareholder agreements are expected in the coming months. If successful, the deal could create one of India’s largest DTH and home entertainment service providers.