The Competition Commission of India (CCI) has granted approval to Tata Sons, the holding company of the Tata Group, to acquire an additional 10 per cent stake in Tata Play. This stake is being purchased from Singapore’s sovereign wealth fund, Temasek Holdings. The fair trade regulator announced the approval on Monday, March 17, in a press release.
Tata Sons to Strengthen Hold Over Tata Play
Last month, Tata Sons submitted an application to CCI seeking clearance to increase its stake in Tata Play. The acquisition involves purchasing shares from Baytree Investments (Mauritius) Pte, a subsidiary of Temasek Holdings. With this transaction, Tata Sons' ownership in Tata Play will rise to 70 per cent, further consolidating its control over the direct-to-home (DTH) and digital content distribution platform. The remaining 30 per cent stake in Tata Play will continue to be held by Walt Disney.
Tata Sons functions as an investment holding company and is registered as a Core Investment Company (CIC) with the Reserve Bank of India (RBI). It is also classified as a “Systematically Important Non-Deposit Taking Core Investment Company.”
Potential Merger with Airtel Digital TV on the Horizon
Reports from The Economic Times suggest that Tata Play and Airtel Digital TV are in discussions to merge their satellite television businesses. If the deal materializes, it could create a company valued at approximately USD 1.6 billion. The merger is seen as a strategic move to counter the increasing shift of consumers from traditional DTH services to digital streaming platforms.
As of September last year, Tata Play and Airtel Digital TV had a combined subscriber base of over 35 million, accounting for more than 50 per cent of India's 60 million DTH subscribers, according to a government report.
Tata Play’s Market Position and Services
Formerly known as Tata Sky, Tata Play is a leading content distribution platform offering both Pay TV and Over-the-Top (OTT) services. The company provides DTH television services that include a wide range of satellite television channels and platform services across various genres and languages.
With the acquisition of an additional 10 per cent stake, Tata Sons is set to further strengthen its presence in the digital and DTH space, reinforcing its commitment to the evolving content distribution market.
