Tata Sons, the holding company of India’s Tata Group, has reportedly acquired an additional 10% stake in satellite TV provider Tata Play from Singapore state investment firm Temasek for around $100 million. This transaction increases Tata Sons’ stake in Tata Play to 70%.
According to the Economic Times, Tata Play has informed the Ministry of Information and Broadcasting about the change in shareholding, as required by regulations governing direct-to-home (DTH) companies.
Following Temasek’s exit, Tata Play will now operate as a 70:30 joint venture between Tata and Walt Disney. Disney acquired its stake in Tata Play through the purchase of Star India from 21st Century Fox.
Although Tata Play’s valuation has decreased from its pre-pandemic target of $3 billion to $1 billion, the company remains a key player for the Tata Group in the media and entertainment sector, particularly in consumer-facing businesses.
Reportedly, discussions are underway between Tata Sons and Disney regarding Disney’s stake in Tata Play. Disney is seeking to exit the DTH business as it is not a core focus area.
Plans for both Temasek and Disney to exit Tata Play through an initial public offering (IPO) have been postponed due to market conditions and challenges in the DTH sector.
Tata Play had received approval from India’s market regulator for its proposed public issue in May 2023.
In a separate development, Reliance Industries and Disney announced in February a merger of their India TV and streaming media assets, creating an $8.5 billion entertainment entity.
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