Tata Sons Boosts Stake in Tata Play to Tighten Grip on DTH Giant

Tata Sons, the holding company of the Tata Group, is set to increase its stake in Tata Play, India’s largest direct-to-home (DTH) operator, from 60% to 70% by acquiring an additional 10% shareholding from Temasek Holdings’ affiliate, Baytree Investments (Mauritius) Pte Ltd.

The Competition Commission of India (CCI) approved the transaction earlier today, as announced on its official X handle, paving the way for Tata Sons to deepen its control over the entertainment platform valued at approximately $1 billion.

The deal, notified to the CCI in January under the Competition Act, follows Tata Sons’ earlier acquisition of Temasek’s 10% stake in April 2024 for $100 million (Rs 835 crore), which had raised its holding from 50% to 60%. This latest move, detailed in a CCI filing, reinforces Tata’s strategy to consolidate ownership in Tata Play, a 70:30 joint venture with Walt Disney, amid a shifting media landscape where Disney has been seeking to offload its 30% stake since merging its India assets with Reliance’s Viacom18 in February 2024.

Tata Play, with 21 million subscribers as of March 2023, dominates India’s DTH market but faces growth headwinds from streaming giants like Netflix and JioCinema. The CCI filing asserts no adverse competition impact, citing synergies with Tata’s broadband services and Tata Play’s OTT platform, Binge.

As Disney’s exit talks with Tata falter—Bloomberg reported a $1 billion deal in May 2024 that sources later denied—this acquisition underscores Tata Sons’ intent to fortify its sole consumer-facing media venture, potentially setting the stage for a future IPO or strategic pivot in a fiercely competitive sector.