Tata Play and Airtel Digital TV are nearing a merger per The Economic Times to combat streaming competition and declining DTH customers. The proposed share-swap merger would likely see Airtel owning more than half of the combined company if completed.
The merger will enhance Airtel’s position by increasing revenue and ownership to over 50% in the new entity. Tata Play, originally Tata Sky and India’s top DTH provider, was initially a joint venture with News Corp.
The merger with Tata Play will increase Airtel’s coverage to around 20 million homes. It will integrate broadband, telecom, and DTH services into one subscription. This is the sector’s second major deal post the 2016 Videocon d2h and Dish TV merger.
The merged company may be led by Airtel’s senior management, with Tata likely having two board seats per a non-binding agreement. The operations are valued at approximately ₹7,000 crore. Post-merger, Disney will maintain its shareholding in the new DTH entity in the country.
Sources News From Various Digital Platforms, Websites, Journalists, And Agencies.
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