The talks on a possible merger between Tata Group company Tata Play and Bharti Airtel subsidiary Bharti Telemedia Limited regarding Direct to Home (DTH) services have now officially ended. This information was given by both the companies through exchange filings on Saturday, May 3.Bharti Airtel clarified in its filing that, “We would like to inform you that due to the inability to find a satisfactory solution, both the parties have decided to end this discussion by mutual consent.” This statement is like putting an end to all speculations about a possible merger, which had been a topic of discussion in the media and industry for the last few months.It is worth noting that on February 26, 2025, Bharti Airtel had announced that it was exploring the possibility of a possible merger of Tata Group’s DTH business Tata Play and its subsidiary Bharti Telemedia Limited. The aim of this merger was to create a strong and competitive platform by combining the DTH services of both the companies in a common entity.According to a report in the Economic Times, this deal was considered strategically important for Airtel, as it could increase its non-mobile revenue. According to the report, Airtel’s stake in the merged entity was to be between 52 to 55 percent, while other shareholders of Tata Play – including big names like Walt Disney – were likely to have a stake of 45 to 48 percent.However, there were reports quoting insiders that the Tata Group wanted two seats on the board of the merged entity, while the operations were proposed to be kept in the hands of Airtel’s senior management. It is believed that the deal did not go ahead due to lack of consensus on board representation and management rights.The failure of this potential deal could prove to be a major turning point in the Indian DTH sector. Tata Play and Airtel Digital TV are both leading DTH service providers in India, and their merger could have resulted in a major market consolidation, which would not only reduce competition but also enable better utilization of operational and technological resources.Talking on this Arun Kumar, finance expert of Tata group said, “At present, the two companies have not given any specific reason behind the decision to end the discussions, except that it was due to not being able to find a satisfactory solution. However, industry experts believe that in such a merger, it is necessary to reach a consensus not only on business benefits but also on many complex aspects like decision making power, board control, and shareholder consent. Now it will be interesting to see how both the companies expand their respective DTH businesses further and what new changes come in the Indian telecom and broadcasting industry in the coming times.”
Reporting to True To Life News