Tata, Bharti groups to reportedly merge their DTH businesses - Tata Play, Airtel Digital TV

The Tata and Bharti groups are reportedly finalizing a merger between their direct-to-home (DTH) businesses, Tata Play and Airtel Digital TV. This merger, the finalization for which is nearly complete, comes as audiences are gradually moving away from DTH to digital platforms.

According to a report, the merger will reportedly take place through a share swap, which will increase Airtel’s non-mobile revenues. Airtel is expected to hold 52-55 per cent of the combined entity, while Tata Play shareholders, including Walt Disney, will hold 45-48 per cent.

The report further added that Airtel’s senior management is expected to run the entity, while Tata is expected to keep two seats on the board.

Both the sides are expected to announce the terms of agreement soon. The due diligence will commence after that. Both the operations are reportedly being valued at around Rs 6,000-7,000 crore.

The two entities had a total 35 million paid subscribers as of September 2024, and the FY24 revenues exceeded Rs 7,000 crore.

The deal will help Airtel get access to Tata Play’s 19 million homes. The deal would be the second major transaction in the DTH sector in about a decade, following the Dish TV-Videocon d2h merger in 2016. 

Also Read: Bharti Airtel plans To Acquire Tata Play