Bharti Airtel buy Tata Group company, After 7 years

Bharti Airtel is reportedly in advanced negotiations with the Tata Group to obtain Tata Play, India’s largest DTH business. The motive is to strengthen Airtel’s position in the digital TV segment, which has been facing growth challenges, and improve its bundled offerings to boost non-mobile incomes through convergence. According to the report, "Bharti Airtel is in advanced negotiations with the Tata Group to buy loss-making Tata Play, India’s largest direct-to-home (DTH) business, said people aware of the matter. The aim is to consolidate its presence in the digital TV segment that’s facing growth challenges while improving Airtel’s bundled offerings to shore up its non-mobile revenues through convergence." 

Deals on 2017

This could make the second largest deal between the two business groups, following Bharti's purchase of Tata’s consumer mobility business in 2017. The purchase of Tata Play would further strengthen Airtel’s presence in the Indian market and orient with its broader strategic goals

Market Liberal and Tata’s Exit

The declining popularity of DTH services due to the rise of OTT platforms and free-to-air options has prompted Tata to reconsider its commitment in the segment. Tata Play, despite being the market leader, has faced many challenges to maintain its position and profitability. 

Airtel’s Strategic Benefits

Obtaining Tata Play would offer several advantages to Airtel. It would provide a huge customer base, access to premium subscribers and toughen its capability to compete with jio’s aggressive offerings. Furthermore, it would enable Airtel to offer Bundled services, such as broadband and DTH, to its customers. 

Valuation and Future Plans

While the particular terms of the deal are yet to be finalized, Airtel is anticipated to obtain Tata Play at a valuation similar to the recent Temasek deal. The purchase could also pave the way for Airtel to expand its broadband offerings through Tata Play Fibre. 

The possible purchase of Tata Play by Bharti Airtel could have important implications for the Indian DTH market. It could lead to further merger among the other players, as well as increased competition in the digital TV and broadband sectors.