Tata Play, Airtel Digital TV Set to Merge Amid DTH Industry Decline: Report

The Tata and Bharti groups are in the final stages of merging their loss-making direct-to-home (DTH) businesses, Tata Play and Airtel Digital TV, respectively. The agreement comes as the pay-TV industry faces a sharp decline due to growing OTT consumption and the rise of free DTH services like DD Free Dish, ET reported, citing people familiar with the matter.

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Also Read: Bharti Airtel in Advanced Talks to Acquire Tata Play: Report

The merger will be executed through a share swap, enhancing Airtel’s non-mobile revenues through convergence. According to sources, Airtel will hold a majority stake of over 50 percent in the combined entity, the report said. Airtel Digital TV operates under Bharti Telemedia Ltd, a wholly owned subsidiary of the publicly listed Bharti Airtel.

Merger Details

Airtel will hold 52-55 percent in the combined entity, while Tata Play shareholders, including Walt Disney, will retain 45-48 percent. The deal values both companies at Rs 6,000-7,000 crore each, according to the report. Tata Play’s 19 million homes will strengthen Airtel’s “triple play” strategy, integrating telecom, broadband, and DTH services.

“This will be a non-binding agreement,” the report quoted an executive as saying. “But with both sides engaged for months, they should move fast to close out all the outstanding issues. For Tata, this has been a drag, and like telecom, they are striking an alliance with a group they are comfortable with.”

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