To Obtain Additional 10% Stake in Tata Play, Tata Sons Seeking Approval from CCI

According to reports, Tata Sons has applied for permission from the Competition Commission of India (CCI) to purchase an additional 10% of DTH provider Tata Play from Temasek Holdings, a Singaporean sovereign wealth fund. According to multiple sources, which cite a notification sent to the CCI earlier this week, the proposed deal is the purchase of a 10% stake in Tata Play by Tata Sons from Baytree Investments (Mauritius) Pte Ltd. It should be noted that Temasek Holdings owns Baytree Investments (Mauritius).
Players Fighting Fierce Battle in Digital TV Sector
In April 2024, when the firm was valued at $1 billion, Temasek Holdings Pte sold its 10% share in Tata Play for INR 835 Cr ($100 million), giving Tata Sons a 70% stake in the company today. Walt Disney owns the remaining 30%, but after simplifying its portfolio and combining its media businesses with Reliance Jio in India, the company has been looking to leave the TV distribution industry. According to earlier reports, telecom giant Bharti Airtel was in advanced negotiations with the Tata Group in October of last year to buy Tata Play. This move would have strengthened Airtel's position in the faltering digital TV market and improved its bundled offerings, ultimately increasing non-mobile revenues through convergence.
TATA Expanding its Network in Entertainment Space
The aforementioned development happened one month after it was reported that Tata Sons intended to invest in its digital division, Tata Digital, by the middle of 2025. A few weeks ago, the competition authority granted approval to Tata Electronics Private Limited's (TEPL) plan to purchase the majority of Pegatron Technology India. The CCI also gave its approval to Tata Electronics' proposal to give Pegatron India full ownership of TEL Components, a TEPL subsidiary.
One of the main content distribution platforms in India is Tata Play (previously Tata Sky), which offers Pay TV and over-the-top (OTT) services via its Tata Play Binge platform. The parties (Tata Sons and Tata Play) claimed in their submission to the CCI for evaluation of the proposed transaction that it would not have a negative impact on competition in any conceivable relevant markets.
As a result, the definition of the relevant market may stay open, and the CCI may evaluate the deal in light of India's wired broadband internet services as well as the complementary relationship between web-based services like Tata Play Binge and internet access offered by Tata Sons through its affiliates, the statement continued. Based on Tata Sons' application to the CCI, is it feasible that the company has chosen to keep the internet piece of Tata Play while letting go of the distribution platform operator's video services section.

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