Bharti Airtel Planning to Acquire Tata Play DTH Business

Bharti Airtel, one of the big telecom companies, may soon buy the direct-to-home (DTH) business of Tata Play. Talks are going on between the two companies for this. However, Tata Play’s DTH service is running in loss. By purchasing this business, Bharti Airtel’s presence in the digital TV segment will increase. The company is facing competition from DishTV and some other companies in this segment.

recently Bharti Airtel had made a partial payment of Rs 8,465 crore of its dues in the spectrum auction held in 2016. However, Bharti Airtel has not disclosed how much outstanding amount it has to pay after this payment. Recently, the Supreme Court had rejected the request of telecom companies for re-calculation of the amount due to the government. Bharti Airtel said that the payment of more than Rs 84 billion made to the Telecom Department includes an interest rate of 9.3 percent.

This company is going to buy Tata Play at a time when the digital TV segment is facing challenges. In a media report quoting sources having knowledge of the matter, it has been said that the country’s second largest telecom company has aimed to improve its tariff plans and increase non-mobile revenue through this acquisition. In the first half of last year, Tata Play had the highest market share in the DTH business with 33 percent. The holding company of this DTH service is Tata Sons. Walt Disney Company also has 30 percent stake in it.

Before Corona, the valuation of Tata Play was around three billion dollars. However, its valuation has since decreased and is now around one billion dollars. Singapore’s Temasek Holding also had a stake of about $100 million in this company till April this year. Bharti Airtel’s deal can also be done at a valuation of around one billion dollars. Even before this, a business deal has been signed between the two companies. Bharti Airtel had purchased the consumer mobility business of Tata Group in 2017.