NewsBytes
    Hindi Tamil Telugu
    More
    In the news
    Narendra Modi
    Amit Shah
    Box Office Collection
    Bharatiya Janata Party (BJP)
    OTT releases
    Hindi Tamil Telugu
    NewsBytes
    User Placeholder

    Hi,

    Logout

    India
    Business
    World
    Politics
    Sports
    Technology
    Entertainment
    Auto
    Lifestyle
    Inspirational
    Career
    Bengaluru
    Delhi
    Mumbai

    Download Android App

    Follow us on
    • Facebook
    • Twitter
    • Linkedin
    Home / News / Business News / Airtel in talks to acquire Tata Play
    Summarize
    Next Article
    Airtel in talks to acquire Tata Play
    Airtel had previously acquired Tata's consumer mobility business in 2017

    Airtel in talks to acquire Tata Play

    By Akash Pandey
    Oct 08, 2024
    03:33 pm

    What's the story

    Bharti Airtel is reportedly in advanced talks with Tata Group to buy Tata Play, India's top direct-to-home (DTH) business.

    The move is part of Airtel's strategy to bolster its position in the digital TV space and boost its non-mobile revenues with bundled offerings.

    The potential acquisition comes after a similar deal in 2017 when Bharti bought Tata's consumer mobility business.

    Market shift

    Tata Play's strategic fit with Airtel's consumer offerings

    The digital TV market has witnessed a shift with users in tier 1 and tier 2 cities increasingly opting for over-the-top (OTT) packs on home broadband, instead of DTH services.

    Rural subscribers are also moving toward Doordarshan's Free Dish.

    An executive close to the development told The Economic Times that while the Tata Group had initially seen strategic value in Tata Play, market dynamics have changed.

    Stake distribution

    Ownership and potential valuation

    Tata Sons now owns a 70% stake in Tata Play, having acquired a 10% stake from Singapore investment firm Temasek Holding Pte in April for ₹835 crore ($100 million).

    The deal had valued the company at $1 billion, a far cry from its pre-pandemic valuation of $3 billion.

    The remaining 30% of Tata Play is owned by Walt Disney, which has been looking to exit the TV distribution business after merging its media operations with Reliance Jio in India.

    Acquisition value

    Airtel's potential acquisition could match Temasek deal

    Airtel is likely to buy Tata Play at a valuation on par with the Temasek deal.

    The original plan was to merge the Tata stakes and take the company public, with IPO documents filed in 2022. However, the plan was shelved by Tata in August.

    If successful, this acquisition could help Airtel take on Jio's aggressive offerings and offset vulnerabilities of a standalone player like Tata Play.

    Business model

    Strategy to offer bundled services

    Analysts believe the acquisition could allow Airtel to offer bundled services like wireless or fiber broadband, DTH, and internet of things.

    "Once you have locked in a family, you can even offer content for free," said an analyst. The key will be valuation with DTH facing challenges globally, Airtel should get a discount.

    Financials

    Tata Play's financial performance and Airtel Digital TV's market position

    Tata Play's consolidated net loss widened to ₹353.8 crore in FY24 from ₹105.25 crore the last year, as per the Registrar of Companies filings.

    The standalone DTH business also posted a loss of ₹247 crore against a net profit of ₹20 crore in FY23.

    Meanwhile, Airtel Digital TV's net loss narrowed to ₹76 crore in FY24 from ₹349 crore, with revenue rising marginally to ₹3,045 crore from ₹2,949 crore.

    Facebook
    Whatsapp
    Twitter
    Linkedin
    Related News
    Latest
    Bharti Airtel
    Tata
    Tata Sons

    Latest

    What are e-passports and how to get one in India Ministry Of External Affairs
    'If there's another attack, India will give solid reply': Modi  Narendra Modi
    Kannada row: HC to hear Sonu Nigam's plea this week Bengaluru
    IPL 2025: Here's why CSK failed to qualify for playoffs  Chennai Super Kings (CSK)

    Bharti Airtel

    Sensex slips 195 points, Nifty barely holds above 22,350 Stock Market
    POCO, Airtel working on most affordable 5G phone in India Poco
    Airtel, Vi roll out special offers for IPL 2024 season Vodafone Idea
    BSE benchmark ascends despite declined valuation of top firms Stock Market

    Tata

    Tata Technologies IPO receives bids worth Rs. 1 lakh crore Tata Technologies
    Tata expands Hosur Apple iPhone factory, doubling production capacity Apple
    Tata Power's market cap surpasses Rs. 1 lakh crore Tata Power
    Tata to build new iPhone factory, accelerating Apple's local production iPhone

    Tata Sons

    Decades after exit, Tata Group expresses interest in Air India Air India
    'Incorrect': Government denies report on Tata winning Air India bid Air India
    Government could sell Alliance Air as well: Check details here Air India
    Tata Sons chairman to meet PM before Air India handover Air India
    Indian Premier League (IPL) Celebrity Hollywood Bollywood UEFA Champions League Tennis Football Smartphones Cryptocurrency Upcoming Movies Premier League Cricket News Latest automobiles Latest Cars Upcoming Cars Latest Bikes Upcoming Tablets
    About Us Privacy Policy Terms & Conditions Contact Us Ethical Conduct Grievance Redressal News News Archive Topics Archive Download DevBytes Find Cricket Statistics
    Follow us on
    Facebook Twitter Linkedin
    All rights reserved © NewsBytes 2025