India's Tata Group and Bharti Group are close to merging their satellite TV businesses, creating a nearly $1.6 billion entity with the aim of tiding over the sustained migration of subscribers to digital streaming,

Tata Play, previously known as Tata Sky, was initially launched as a joint venture with News Corp. In 2019, Walt Disney took over the company’s stakes following its acquisition of 21st Century Fox. The merger is expected to give Airtel access to Tata Play’s vast subscriber base, which currently serves nearly 20 million homes.

Airtel will access Tata Play’s 19 million households, supporting its plan to combine telecom, broadband, and DTH offerings. In April 2024, Tata Sons raised its Tata Play stake to 70%, buying Temasek’s 10% share for Rs. 835 crore ($100 million), setting the company’s value at $1 billion—down from $3 billion pre-pandemic.

Airtel is expected to hold 52-55 per cent of the combined entity, while Tata Play shareholders, including Walt Disney will hold 45-48 per cent.

The Tata Play, Airtel Digital TV merger is likely to take place via a share swap, the ET report says. Tata Play and Airtel Digital TV are heading towards a merger, an Economic Times report said on Tuesday.

Tata Group and Bharti Group are close to merging their satellite TV businesses, creating a nearly $1.6 billion entity with the aim of tiding over the sustained migration of subscribers to digital streaming,

The merger will see Airtel holding a majority stake of 52-55% in the combined entity, while Tata Play shareholders, including Walt Disney, will own 45-48%.

It is estimated that the combined entity will serve approximately 35 million paid subscribers, drawn from Tata Play’s 19 million and Airtel Digital TV’s roughly 16 million, as of September 2024

India's satellite TV landscape is set for a major transformation as two leading players move towards a strategic consolidation. With the industry witnessing a steady shift towards digital streaming, traditional direct-to-home (DTH) operators are exploring new ways to stay competitive and sustain growth.