Tata Group reportedly in talks to buy Temasek stake in Tata Play

Indian conglomerate Tata Group has begun talks with Singapore state investment outfit Temasek, the owner of Singapore’s Mediacorp and majority shareholder of Singtel, about potentially purchasing Temasek’s stake in its pay TV operation Tata Play, according to a report by Bloomberg.

According to Bloomberg, Tata Group is looking to potentially postpone an planned IPO of Tata Play because of unfavourable market conditions and may purchase Temasek’s stake, enabling the latter to exit its holding.

Temasek has a reported 20% stake in Tata Sky, which was set up as a JV between Tata Group and Twentieth Century Fox, now owned by Disney, with the latter holding a 20% stake.

Disney planned to sell its stake in the operation as part of the IPO, in order to focus on its own broadcast and streaming business in India.

Tata Play, formerly known as Tata Sky, offers TV services via DTH satellite and more recently entered the streaming arena with Tata Play Binge, a platform that aggregates other OTT apps including Amazon Prime Video, Disney+ Hotstar, SonyLIV, Zee5, Voot Select, Voot Kids, ShemarooMe, SunNxt, Hungama Play, Eros Now, CuriosityStream, EpicOn and Docubay.

Tata secured approval from Indian markets watchdog SEBI in April for its IPO, with the aim of raising about IND30 billion through the listing.

Tata Play had initiated its IPO plan at the end of 2022, taking advantage of a legal provision that allowed Indian companies to file IPO documents confidentially with the watchdog.