Airtel confirms 'bilateral discussions' with Tata Group for DTH merger

Bharti Airtel on Wednesday confirmed ongoing discussions with the Tata Group regarding a potential merger of their direct-to-home (DTH) businesses, following media reports speculating on the deal.

 

In an exchange filing, Airtel stated, "We wish to submit that Bharti Airtel Limited (‘Airtel’) and TATA Group are in bilateral discussions to explore a potential transaction to achieve a combination of TATA Group’s Direct To Home (‘DTH’) business housed under Tata Play Limited, with Bharti Telemedia Limited, a subsidiary of Airtel, in a structure acceptable to all parties."

 

Airtel Digital TV, Tata Play share swap deal

According to earlier media reports, the deal is expected to be structured as a share swap, with Airtel acquiring a majority stake (52-55 per cent), while Tata Play’s shareholders, including Tata Sons and Walt Disney, would retain a 45-48 per cent share in the combined entity. 

Airtel, Tata Play plan merger amid DTH struggles, expand service bundles

 

 

This consolidation is set to benefit Airtel by expanding its broadband and entertainment business, integrating telecom, broadband, and DTH services into a unified offering. Airtel Digital TV, which operates under Bharti Telemedia, would gain access to Tata Play’s 19 million homes and its half a million broadband customers.

 

Post-merger, the new entity would have a combined subscriber base of 35 million, with FY24 revenues exceeding Rs 7,000 crore. Both Airtel and Tata Play’s DTH businesses have been valued at Rs 6,000-7,000 crore each. 

DTH and media industry shake-up

This potential merger follows another major development in India’s media sector—the Reliance-Disney merger, which is bringing Star India and Viacom18 together under JioStar, forming the country’s largest media company.

 

If completed, the Airtel-Tata Play merger will mark the biggest deal in India’s DTH sector since the Dish TV-Videocon d2h merger in 2016. The deal would strengthen Airtel’s market position, enabling it to better compete with JioStar and other media giants in an increasingly competitive space.

 

Shares of Bharti Airtel closed at Rs 1,641.60 on the BSE on Wednesday, ahead of the company’s official statement.