Airtel in 'Bilateral Discussions' with Tata Group Over DTH Merger

Bharti Airtel confirmed on Wednesday that it is in talks with the Tata Group about a potential merger of their Direct-To-Home (DTH) businesses. The announcement comes after media reports speculated on the deal, fueling anticipation of a significant reshaping in the Indian DTH sector. The merger could combine Airtel Digital TV and Tata Play, two major players in the market, creating a larger entity to compete with rivals in the rapidly evolving digital entertainment industry.

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-Bharti Airtel has confirmed ongoing discussions with the Tata Group regarding a potential merger of their direct-to-home (DTH) businesses. The deal is expected to be structured as a share swap, with Airtel acquiring a majority stake of 52-55%, while Tata Play’s shareholders, including Tata Sons and Walt Disney, would retain a 45-48% share in the combined entity. This consolidation would significantly enhance Airtel's broadband and entertainment portfolio, integrating telecom, broadband, and DTH services into one unified offering.

Airtel Digital TV would gain access to Tata Play’s 19 million homes and its 500,000 broadband customers, expanding its reach and subscriber base. Post-merger, the new entity would boast a combined 35 million subscribers and projected FY24 revenues surpassing Rs 7,000 crore. Both DTH businesses have been valued at Rs 6,000-7,000 crore each.

This move follows the recent Reliance-Disney merger, which combined Star India and Viacom18 to form JioStar, positioning it as India’s largest media company. If completed, the Airtel-Tata Play merger would represent the biggest deal in India’s DTH sector since the 2016 Dish TV-Videocon d2h merger. The deal would strengthen Airtel’s competitive edge, enabling it to better challenge rivals like JioStar and other media giants. Bharti Airtel's shares closed at Rs 1,641.60 on the BSE on Wednesday, ahead of the company’s official statement.