Bharti Airtel is in talks to take over Tata Play direct to home (DTH) service which is currently said to be running at a loss, according to a report. The move will reportedly strengthen Airtel’s presence in the digital TV segment, taking on competition from the likes of D2H, DishTV and others. Notably, this development comes after the Indian telecom provider made an early payment of Rs. 8,465 crore ($1.01 billion) to partially settle unpaid spectrum fees from the 2016 auction.
Airtel’s acquisition of Tata Play
According to an Economic Times report, Airtel’s acquisition of Tata Play (formerly 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 bundles and increase its non-mobile revenue through this convergence, the report added, citing people familiar with the matter.
Tata Play is India’s largest DTH company, with a reported market share of 33 percent in the first half of last year, according to market analysis firm Statista.
Tata Sons is the holding company of DTH services while Walt Disney Company also owns 30 percent. Before the Covid-19 pandemic, Tata Play was valued at $3 billion (roughly Rs. 25,000 crores). However, its valuation has been estimated and is currently valued at around $1 billion (Rs. 8395 crore).
Notably, Singaporean investment firm Temasek Holding Pte also held a 10 percent stake in the company, but it was bought out by Tata Sons for a reported $100 million (Rs. 800 million) in April this year. The Bharti Airtel deal is expected to be of similar value, according to the report. If the move goes ahead, it would be the second deal between the two companies, following Airtel’s acquisition of Tata’s consumer mobility business in 2017, which was also reported to be loss-making.
