Bharti Airtel has confirmed it is in talks with Tata Group to merge Tata Play’s DTH business with its subsidiary, Bharti Telemedia Ltd. The deal is in the discussion stage as of February 26, following media reports about the potential merger.
The merger would combine Tata Play’s 19 million customers with Airtel’s services, boosting Airtel’s non-mobile revenue. As of September 2024, the DTH market in India had about 59.91 million subscribers, with Tata Play holding 31.99% of the market share and Bharti Telemedia 29.38%. Revenue for top DTH players fell from Rs 12,284 crore in FY22 to Rs 11,072 crore in FY23.
The merger is expected to occur via a share swap, with Airtel acquiring Tata Play, which is valued at around Rs 6,000-7,000 crore. Tata Sons owns 70% of Tata Play, while Disney holds 30% and is looking to exit the TV distribution business.