After the merger of Reliance Industries’ and Disney’s streaming services, JioCinema and Disney+ Hotstar, the business world is abuzz with reports of another potential mega merger that could shake up the telecom sector. Speculation is growing about a possible Airtel-Tata merger, which, if finalized, could have a significant impact on telecom technology and industry dynamics. Bharti Airtel Ltd on Wednesday(26 February) said it is in discussions with Tata Group for a potential merger of their direct-to-home (DTH) businesses, confirming media reports about an impending deal between Airtel Digital TV and Tata Play. However, the telecom major clarified that the talks are at a preliminary stage.
The Mega Merger
Airtel’s DTH company Airtel Digital TV is housed under Bharti Telemedia Limited while Tata Group’s DTH business is housed under Tata Play Limited. Earlier, The Economic Times reported that the Tata and Bharti groups were in the final stages of merging their struggling DTH businesses through a share-swap deal. If the merger goes through, Airtel is expected to hold a majority stake, owning more than 50% of the combined entity.
Additionally, The report also said the merger would help Airtel gain access to nearly 20 million homes via Tata Play’s connections. It would lead to service providers clubbing broadband, telecom and DTH plans into a single subscription. The deal would be the second high-stakes agreement in the space after the 2016 merger of Videocon d2h and Dish TV.
Tata Sky entered the Indian market in 2004 as a joint venture between Tata Sons and Rupert Murdoch’s 21st Century Fox. However, in March 2019, the Walt Disney Company acquired 21st Century Fox, taking over its stake in the company. In 2022, the popular DTH provider underwent a rebranding and was renamed Tata Play, reflecting its expanded focus beyond just satellite television.
According to various news reports, Airtel stated in a submission to the stock exchanges on Wednesday: “We wish to submit that Bharti Airtel Limited and the TATA Group are in bilateral discussions to explore a potential transaction to merge TATA Group’s Direct-to-Home business, housed under Tata Play Limited, with Bharti Telemedia Limited, a subsidiary of Airtel, in a structure acceptable to all parties.”
