Tata Group’s Tata Play and Bharti Airtel’s subsidiary Bharti Telemedia Ltd. have mutually decided to terminate discussions regarding a potential merger aimed at expanding their Direct To Home (DTH) operations. The announcement was made through an exchange filing by Bharti Airtel on Saturday, May 3, As per a report earlier published by The Economic Times.

“We wish to inform you that after not being able to find a satisfactory resolution, the parties have mutually decided to terminate the discussions,” Bharti Airtel stated in the official filing.

The merger talks were first publicly acknowledged in an exchange filing dated February 26, 2025, where Bharti Airtel confirmed that bilateral discussions with the Tata Group were underway. These talks aimed at evaluating a possible transaction to merge Tata Play’s DTH business with Airtel’s Bharti Telemedia Ltd in a mutually acceptable structure.

The proposed merger was intended to bolster Airtel’s non-mobile revenue stream through content and service convergence.

Had the deal materialised, it would have been one of the most consequential DTH transactions in the past decade. Airtel was expected to hold a 52 to 55 per cent stake in the merged entity, while Tata Play shareholders including Walt Disneyn would reportedly retain the remaining 45 to 48 percent. However, despite weeks of talks and due diligence, the companies could not agree on several terms of the deal.

Reportedly, one of the sticking points was the Tata Group’s demand for two board seats in the merged company, although operational control was to rest with Airtel’s senior management. These governance matters, among others, could not be reconciled to the satisfaction of both sides, ultimately leading to the dissolution of talks.

Tata Play, formerly known as Tata Sky, continues to remain India’s largest DTH service provider, with a significant presence in both urban and rural markets. The merger, if completed, would have further consolidated Airtel’s hold in the segment and created a strong rival to Reliance Jio’s evolving content strategy.

Following the news of the deal being called off, Bharti Airtel’s stock closed 0.63 percent lower at Rs.1,852 on Friday, compared to the previous close of Rs.1,863.70. The company’s market capitalisation stood at Rs.10.56 lakh crore at the end of Friday’s trading session.

While the talks have officially ended, industry observers believe the episode signals an ongoing trend of strategic evaluations among telecom and media companies, as they strive to adapt to India’s rapidly changing digital content landscape.