Deal Failed! Tata Play and Airtel Call off DTH Merger Talks

Bharti Airtel and Tata Group have called off discussions to merge their direct-to-home (DTH) businesses, Bharti Telemedia Limited and Tata Play Limited, respectively, according to a Bombay Stock Exchange (BSE) filing on Saturday.

The decision, announced by Airtel, stems from the parties’ inability to reach a “satisfactory resolution,” halting a potential consolidation in India’s competitive DTH market.

The talks, first disclosed on February 26, 2025, aimed to combine Airtel’s loss-making DTH arm with Tata Play, a leading player in cable and satellite television services. Airtel’s filing at the time noted “bilateral discussions to explore a potential transaction” for a structure acceptable to both sides, but no specific details were shared.

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The merger, if successful, would have been the second major DTH consolidation after the 2016 Dish TV-Videocon d2h deal, potentially reshaping the sector amid rising competition from OTT platforms.

The termination reflects challenges in aligning strategic and financial interests, with Airtel’s DTH business reporting losses of Rs 1,138 crore in FY24, while Tata Play holds a stronger market position with 22 million subscribers. Industry analysts suggest valuation disputes or regulatory concerns may have derailed the deal.

The Indian DTH market, valued at Rs 20,000 crore, faces pressure from streaming services, pushing providers toward mergers for scale. Airtel and Tata Group will now pursue independent strategies, with Airtel likely focusing on its 5G and broadband expansion to offset DTH losses.

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