Telecommunications giant Bharti Airtel is said to be in the concluding stages of negotiations to acquire Tata Play, a move that could significantly bolster its digital television segment.

What Happened: Bharti Airtel is in the advanced stages of discussions to acquire the loss-making Tata Play, to strengthen its position in the digital TV segment, which is experiencing growth challenges, while enhancing Airtel's bundled offerings to boost non-mobile revenues through convergence, The Economic Times said.

If the deal goes through, it would mark a major milestone in India’s digital television landscape and solidify Airtel’s standing in the market, enhancing its competitive advantage. It will also mark the second time the two business groups reached an agreement, following Airtel’s acquisition of Tata’s struggling and leveraged consumer mobility business in 2017, which was integrated two years later.

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The discussions, which have been ongoing for several weeks, have reportedly gained traction, and a formal announcement is anticipated shortly. The specifics of the deal, including the financial terms, remain undisclosed for now.

The report said that the deal talks coincide with an ongoing shift amid Tier 1 and Tier 2 users to over-the-top (OTT) packages on home broadband instead of DTH, opting for more affordable online options, whereas rural subscribers are increasingly choosing Doordarshan’s Free Dish.

Tata Sons, the holding company of the diversified conglomerate, currently owns 70% of Tata Play after purchasing Singapore investment firm Temasek Holdings Pte‘s 10% stake in April for ₹835 crore ($100 million), which valued the company at $1 billion—down one-third from its pre-pandemic valuation of $3 billion.

Airtel is expected to acquire Tata Play at a valuation similar to that of the Temasek deal, according to the report. The plan was to consolidate Tata’s stakes and prepare for an IPO, with documents filed in 2022. However, Tata put the listing plan on hold in August.

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