Tata Sons Boosts Stake in Tata Play with Temasek Acquisition
Deal News | Mar 17, 2025 | EIN
The Competition Commission of India (CCI) has given the green light to Tata Sons' acquisition of a 10% stake in Tata Play from Temasek-owned Baytree Investments. This acquisition, valued around $100 million, increases Tata Sons' stake in Tata Play to 70%, with Walt Disney holding the remaining 30%. The deal values Tata Play at $1 billion, a marked decrease from its previous $3 billion valuation. The decision marks another key regulatory endorsement for Tata Sons, which is classified as a Systemically Important Non-Deposit Taking Core Investment Company by the Reserve Bank of India. Further developments around Tata Play include its exploratory merger talks with Bharti Airtel to combine their DTH businesses into a new entity where Airtel would have majority control post-merger.
Sectors
- Telecommunications & Media
- Private Equity & Investment Management
Geography
- India – The primary geographical focus of the article is India, where Tata Sons and Tata Play are based, as well as the operational jurisdiction of the CCI.
- Mauritius – Baytree Investments, the selling party, is based in Mauritius, indicating its geographical relevance to the transaction.
Industry
- Telecommunications & Media – The article involves companies providing direct-to-home (DTH) broadcasting services, which are part of the telecommunications and media industry.
- Private Equity & Investment Management – The transaction involves investment firms like Tata Sons and Temasek, indicating significant activity within the private equity and investment management sector.
Financials
- $100 million – The amount paid by Tata Sons to acquire a 10% stake in Tata Play from Baytree Investments.
- $1 billion – Valuation of Tata Play after the transaction.
- $3 billion – Earlier valuation of Tata Play before the transaction.
- Rs 3126 crore – The amount associated with Bharti Airtel's acquisition of a 20% stake in Bharti Telemedia in 2021.
- Rs 15,630 crore – Valuation of Bharti Telemedia after Airtel's acquisition of Warburg Pincus affiliate's stake.
- Rs 6,000-7,000 crore – Estimated combined valuation of Tata Play and Bharti Telemedia in a potential merger.
- Rs 354 crore – Tata Play's consolidated net loss for FY24.
- Rs 4,327 crore – Tata Play's consolidated revenue for FY24.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Tata Sons Private Limited | Bidding Company | Company | An investment holding company that acquired a 10% stake in Tata Play to increase its total stake to 70%. |
| Tata Play Limited | Target Company | Company | A direct-to-home service provider in which Tata Sons has increased its ownership. |
| Baytree Investments (Mauritius) Pte Ltd | Selling Company | Company | A Temasek-owned entity that sold its 10% stake in Tata Play to Tata Sons. |
| Walt Disney | Other Stakeholder | Company | Holds a 30% stake in Tata Play following the transaction. |
| The Competition Commission of India (CCI) | Regulatory Authority | Government | Approved the acquisition deal between Tata Sons and Baytree Investments. |
| Bharti Airtel | Potential Merger Partner | Company | In talks with Tata Play to potentially merge their DTH operations. |