Sunil Mittal led Bharati Airtel is in talks with Tata Group to buy their company which is already in loss, this move can disrupt DTH market and create challenges for Reliance Jio.
Bharti Airtel, led by Sunil Mittal, is in advanced negotiations to acquire Tata Play, India’s largest direct-to-home (DTH) service provider. It will help the company to enhance Airtel’s presence in the digital TV space. The acquisition, reported by The Economic Times citing sources, comes as a strategic effort by Airtel to counter slow growth in the DTH market and thereby boost its services and increase non-mobile revenues.
If finalized, the deal would also mark Tata Group’s exit from the content and entertainment sector, as already they have divested of its consumer mobility business to Bharti Airtel in 2017. That sale was the first major divestment under Tata Sons Chairman N Chandrasekaran.
Airtel Challenge To Mukesh Ambani’s Jio
Airtel Digital TV has seen steady growth with 190,000 net subscriber additions in the June quarter, marking three consecutive quarters of expansion. As compared to other struggling DTH operators like Dish TV, with a 20.8% market share, and Sun TV Direct, holding 18.7%, this is a good move for the company.
In addition to its DTH services, Tata Play operates Tata Play Fibre, which has around 480,000 broadband subscribers. Airtel has a strong foothold in key regions such as southern India, Maharashtra, and West Bengal. So this acquisition is seen as a strategic move to compete more effectively with Reliance Jio, which has been aggressive in its content and distribution strategies.
According to reports, this significant step for Airtel will strengthen its position in the digital TV and content space amidst increasing competition from OTT services and rival players like Reliance Jio.
Airtel-Tata Play Negotiations
Negotiations between Airtel and Tata Group have been ongoing for several weeks, with an official announcement expected soon, according to the report. Tata Sons, which holds a 70% stake in Tata Play, has yet to issue a formal comment. The remaining 30% is owned by Walt Disney, which is also reportedly looking to exit the TV distribution business as part of its broader strategic pivot following its 2019 merger with 21st Century Fox.