Tata Sons raises stake in Tata Play to 70%; acquires Temasek’s 10% stake for $100 mn: Report

Tata Sons has reportedly raised its shareholding in Tata Play by acquiring Singaporean investment Temasek’s stake. Tata’s shareholding in Tata Play has been increased to 70 per cent after it acquired the 10 per cent stake of Temasek for about $100 million. 

According to a report in The Economic Times, the direct-to-home firm, Tata Play, has informed the Ministry of Information and Broadcasting about the change in shareholding, as per the norm. Valued at $1 billion, Tata Play is the sole consumer-facing business of the conglomerate’s media and entertainment sector. 

The platform, India’s largest DTH firm, has 21 million subscribers. 

TATA PLAY’S PLAY

Tata Play will now become a 70:30 joint venture between Tata and Walt Disney. However, as per the report, Tata is believed to have held talks with Disney to buy out its stake too. Disney wants to exit the DTH platform as it is a non-core business for the firm. 

After it acquired 21st Century Fox’s assets in India, Disney inherited the 20 per cent stake in Tata Play. But Disney has now decided to merge its Star India business with Reliance’s Viacom18 to create a $8.5 billion media giant. 

IS IPO STILL ON THE CARDS?

SEBI had approved Tata Play’s proposed initial public offering (IPO) in May 2023, after it became the first company in November 2022 to become the first company in India to file confidential papers with SEBI. 

The proposed IPO was postponed due to tough market conditions. 

Tata Play, formerly known as Tata Sky, was established in 2001, has a significant presence across India. Temasek had invested in the platform in 2007.