Tata Group and Bharti Group are reportedly in talks to merge their satellite TV businesses, potentially creating a new entity valued at around $1.6 billion. This move comes as both companies look to tackle the ongoing trend of viewers shifting towards digital streaming platforms.
According to a report from the Economic Times, the new merged company would likely be led by Bharti Airtel, which is expected to hold a controlling stake of about 52%-55%. The remaining shares would be held by Tata Play’s current investors, including Disney. Tata Play is a joint venture, with Tata Sons holding 70% and Disney 30%.
Together, Tata Play and Airtel are said to have about 35 million paid subscribers as of September last year, which is more than half of the 60 million total subscribers in the industry. The two businesses are reportedly valued between ₹60 billion ($690.76 million) and ₹70 billion ($805.89 million) each, and their combined revenue for fiscal year 2024 is expected to exceed ₹70 billion.
The deal, if it goes through, will be the second major merger in the satellite TV industry in recent years. The first was in 2016 when Dish TV merged with Videocon d2h. Last year, Reliance Industries also merged its streaming media assets with Disney's Indian media operations in a deal worth $8.5 billion.
While Bharti Airtel's shares were up 1.7% recently, no official comments have been made yet by the companies involved, including Tata Play and Disney.