The proposed transaction, as per media reports, would involve a share swap. This confirmation came in an exchange filing where Airtel stated, “The above is at a discussion stage only.”
Airtel is expected to secure a 52-55% stake in the resulting entity, while Tata Play’s stakeholders, including Tata Sons and Walt Disney, would hold 45-48 per cent, according to the report.
The merged entity’s operations are estimated to be worth approximately ₹7,000 crore, based on FY24 revenue figures, and would serve a combined total of 35 million subscribers.
The report also indicated that Airtel’s senior management would oversee the new company, with Tata retaining two board seats as part of a non-binding arrangement. Disney’s shareholding in the combined entity would persist.
If finalised, the merger would enable Airtel to expand its revenue from non-mobile services by combining telecom, broadband, and DTH into one subscription package. It would also grant Airtel access to Tata Play’s network, which connects 19 million homes and includes 500,000 broadband users.
Valuation estimates from the report place both Airtel Digital TV and Tata Play’s DTH businesses at ₹6,000-7,000 crore each.
Tata Play’s history traces back to 2004 when it started as Tata Sky, a collaboration between Tata Sons and 21st Century Fox. The Walt Disney Company took over Fox’s stake in March 2019, and the service was rebranded as Tata Play in 2022, according to company records.
(Edited by : Vivek Dubey)
