Bharti Airtel Reportedly in Negotiations to Acquire Loss-Making Tata Play DTH Business

Tata Play is India’s largest DTH business, with a reported 33 percent market share in the first half of last year, according to market analysis firm.

Written by Shaurya Tomer, Edited by Siddharth Suvarna | Updated: 8 October 2024 11:46 IST

Bharti Airtel Reportedly in Negotiations to Acquire Loss-Making Tata Play DTH Business

Photo Credit: Reuters

Bharti Airtel also acquired Tata’s consumer mobility business back in 2017

Highlights

Bharti Airtel is reported to acquire Tata Play DTH business
This move is said to boost telecom provider's non-mobile revenue
Tata Play is currently estimated to be valued at about $1 billion

Bharti Airtel is in talks to acquire Tata Play direct to home (DTH) service which is currently said to be a loss-making business, according to a report. This move will reportedly strengthen Airtel's presence in the digital TV segment, facing competition from the likes of D2H, DishTV and others. Notably, this development comes after the Indian telecommunications provider made an early payment of Rs. 8,465 crores ($1.01 billion) to partially settle its outstanding spectrum fees from a 2016 auction.

Airtel's Acquisition of Tata Play

According to an Economic Times report, Airtel's acquisition of Tata Play (previously known as Tata Sky) comes at a time when the digital TV segment is facing challenges. Sunil Mittal-led Airtel, which is India's second-largest telecom operator, aims to improve its bundlings and boost its non-mobile revenue through this convergence, the report added citing people familiar with the matter.

Tata Play is India's largest DTH business, with a reported 33 percent market share in the first half of last year, according to market analysis firm Statista.

Tata Sons is the holding company of the DTH service while the Walt Disney Company also owns 30 percent of it. Prior to the Covid-19 pandemic, Tata Play was valued at $3 billion (roughly Rs. 25,000 crore). However, its valuation has suffered and is currently estimated to be about $1 billion (Rs. 8,395 crore).

Notably, Singapore's Temasek Holding Pte investment firm also held a 10 percent stake in the company but was bought out by Tata Sons for a reported $100 million (Rs. 800 crore) in April this year. Bharti Airtel's deal is expected to be at a similar valuation, as per the report. If this move comes to fruition, this would be the second business between both companies, following Airtel's acquisition of Tata's consumer mobility business in 2017, which was also reported to be suffering losses.

Comments

For the latest tech news and reviews, follow Gadgets 360 on X, Facebook, WhatsApp, Threads and Google News. For the latest videos on gadgets and tech, subscribe to our YouTube channel. If you want to know everything about top influencers, follow our in-house Who'sThat360 on Instagram and YouTube.

Further reading: Bharti Airtel, Tata Play, DTH

Shaurya Tomer

Email Shaurya Tomer

Shaurya Tomer is a Sub Editor at Gadgets 360 with 2 years of experience across a diverse spectrum of topics. With a particular focus on smartphones, gadgets and the ever-evolving landscape of artificial intelligence (AI), he often likes to explore the industry's intricacies and innovations – whether dissecting the latest smartphone release or exploring the ethical implications of AI advancements. In his free time, he often embarks on impromptu road trips to unwind, recharge, and ...More