Proposed $1.6 Billion Deal to Create a Stronger Entity Amidst Streaming Disruptions
February 27, 2025: Bharti Airtel and Tata Group have entered bilateral discussions to explore a potential merger of their direct-to-home (DTH) television services, combining Tata Play with Bharti Telemedia, Airtel’s DTH arm. The strategic move comes in response to the growing competition from digital streaming platforms, which have been attracting a significant share of traditional DTH subscribers.
In a regulatory filing, Bharti Airtel confirmed the discussions, stating:
“Airtel and the Tata Group are in bilateral discussions to explore a potential transaction to achieve a combination of Tata Group’s DTH business housed under Tata Play, with Bharti Telemedia, a subsidiary of Airtel, in a structure acceptable to all parties.”
Key Details of the Potential Merger:
- The deal is estimated to be valued at approximately $1.6 billion.
- Bharti Airtel is expected to hold a majority stake of 52-55%, while Tata Play’s existing shareholders, including Walt Disney, would retain the remaining shares.
- The merged entity would have a combined subscriber base of around 35 million paid users, making up more than 50% of India’s 60 million DTH subscribers.
Why the Merger?
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The DTH sector has been struggling with declining subscriptions as viewers migrate to digital streaming services. By merging their operations, Bharti Airtel and Tata Play aim to:
- Enhance operational efficiency
- Expand service offerings
- Strengthen their ability to compete against OTT platforms
History of Collaboration
This isn’t the first strategic alliance between Bharti Airtel and Tata Group. In 2017, Airtel acquired Tata Teleservices’ consumer mobile business, showing a history of collaboration between the two conglomerates.
Next Steps & Regulatory Approvals
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The final structure of the merger will be subject to regulatory approvals and mutual agreement on key terms. If approved, the deal could reshape India’s DTH market and help both companies counter the growing dominance of digital streaming platforms.
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