Tata Sons seeks CCI nod for 10 per cent stake buy in Tata Play
Tata Sons Private Limited (Tata Sons) has approached the Competition Commission of India (CCI) for approval to acquire a 10 per cent stake in Tata Play Limited from Baytree Investments (Mauritius) Pte Ltd., a Temasek affiliate.
The proposed transaction, notified under Section 6(2) read with Section 5(a) of the Competition Act, 2002 on Thursday, is expected to strengthen Tata Sons’ ownership in Tata Play, a leading player in India’s Pay TV and OTT market.
Tata Play, formerly known as Tata Sky, is a well-established content distribution platform that provides Direct-to-Home (DTH) television services along with Tata Play Binge, a subscription-based OTT aggregator.
Broader strategy
The additional stake acquisition aligns with Tata Sons’ broader strategy of consolidating its digital and media investments. The company has stated in its submission that the deal will not significantly impact competition in the market, as Tata Play operates in a highly competitive segment with multiple service providers.
The companies have identified two key market dynamics in their filing with the CCI. Firstly, there is a horizontal overlap in the provision of wired broadband internet services in India. Secondly, a complementary linkage exists between Tata Play Binge and Tata Sons’ broader digital ecosystem, where internet access plays a crucial role in delivering web-based services. Given these factors, Tata Sons maintains that the transaction will not result in any adverse effect on market competition.
With the Indian media landscape rapidly shifting towards digital platforms, Tata Sons’ move to acquire a greater stake in Tata Play is a strategic step towards strengthening its presence in the entertainment and broadband space. The company’s increasing focus on digital expansion is evident in its recent efforts to integrate technology-driven services across various consumer segments.
The transaction now awaits regulatory clearance, and given the absence of any significant competition concerns, Tata Sons is optimistic about receiving CCI approval.
If the deal is cleared, it will further cement Tata Play’s position in the evolving Pay TV and OTT markets, enabling it to compete more effectively against rivals in India’s growing digital entertainment industry, economy watchers said.
In April last year, Tata Sons had reportedly raised its shareholding in Tata Play to 70 per cent by acquiring Singapore government-owned investment firm Temasek’s 10 per cent stake in the company for about $100 million (₹835 crore)
