Airtel and Tata Play halt merger talks
Bharti Airtel and Tata Group have formally ended talks on a planned merger between their Direct-To-Home (DTH) operations—Airtel Digital TV and Tata Play. Started in early 2025, the negotiations were to merge two of India’s largest players in the pay-TV space through a possible share swap transaction. The two sides, however, have now agreed mutually to cancel the talks after not being able to come to a mutually acceptable deal.
The mooted merger would have provided Airtel with a controlling share of more than 50% in the merged entity, further bolstering its hold in the non-mobile business and increasing bundled services for customers. The deal had been viewed by industry players as a strategic attempt to address subscriber losses and increased competition from Over-The-Top (OTT) platforms.
Tata Play, which was originally known as Tata Sky, continues to be the nation’s biggest DTH operator with approximately 19 million subscribers. Tata Sons raised its stake to 70% in 2024 by buying another 10% from Temasek Holdings for $1 billion, significantly lower than its pre-pandemic worth of $3 billion.
The merger cancellation follows increasing woes for the DTH industry in India. Subscriber numbers are declining as consumers turn towards digital streaming and free-to-air channels like DD Free Dish.
The aborted merger captures the wider industry challenge to move beyond a shifting media environment, where established pay-TV operators need to innovate to remain competitive and relevant in the digital age.
