Tata Play and Airtel Digital TV could merger soon. Bharti Airtel has confirmed that the merger talks between the two companies are being explored.

Industry experts view that Airtel Digital TV-Tata Play merger as a strategic response to DTH market decline, driven by free-to-air (FTA) and streaming competition. They emphasise the benefits of consolidation,

India's Tata Group and Bharti Group are close to merging their satellite TV businesses, creating a nearly $1.6 billion entity with the aim of tiding over the sustained migration of subscribers to digital streaming,

Bharti Airtel is in discussions with Tata Group for a potential merger of their DTH businesses, potentially creating a new industry giant. Learn more about the potential deal and its implications.

The DTH space has been facing headwinds with the emergence of over-the-top (OTT) platforms and IPTV options, especially with the expanding price range of smart TVs.

This consolidation is set to benefit Airtel by expanding its broadband and entertainment business, integrating telecom, broadband, and DTH services into a unified offering

The potential merger would combine Airtel’s DTH business, Bharti Telemedia Limited, with Tata Group’s DTH business, Tata Play Limited. The merger would create a larger and more efficient DTH company, which would be better positioned to compete in the Indian market.

Tata and Bharti groups are finalizing a merger of their DTH businesses, Tata Play and Airtel Digital TV, due to consumer shifts to digital platforms. The merger, structured through a share swap, will boost Airtel's revenues and is to be managed by Airtel's senior management.

It is estimated that the combined entity will serve approximately 35 million paid subscribers, drawn from Tata Play’s 19 million and Airtel Digital TV’s roughly 16 million, as of September 2024

Airtel will access Tata Play’s 19 million households, supporting its plan to combine telecom, broadband, and DTH offerings. In April 2024, Tata Sons raised its Tata Play stake to 70%, buying Temasek’s 10% share for Rs. 835 crore ($100 million), setting the company’s value at $1 billion—down from $3 billion pre-pandemic.

Bharti Airtel confirmed "bilateral discussions" with Tata Group for a possible merger of their direct-to-home (DTH) segments, Bharti Telemedia and Tata Play, respectively, on Wednesday.