Tata strengthens grip on Tata Play with increased stake purchase: Reports

Tata Sons, the holding company of the Tata Group, has increased its stake in direct-to-home (DTH) provider Tata Play by 10 percent, acquiring the shares from Singapore investment firm Temasek for approximately $100 million. As reported by ET, this move raises Tata Sons' ownership to 70 percent solidifying its control over the company.

Following Temasek's exit, Tata Play will operate as a 70:30 joint venture between Tata and Walt Disney. Disney holds its stake through its acquisition of Star India, formerly owned by 21st Century Fox. While Tata Play's valuation has decreased from its pre-pandemic target of $3 billion to $1 billion, it remains a crucial player in the media and entertainment sector as Tata's primary consumer-facing business.

The report also mentions ongoing discussions between Tata Sons and Disney regarding the latter's potential exit from Tata Play. Both parties are reportedly exploring options for an exit through an IPO which faced postponement due to market conditions and challenges within the DTH sector. Notably, Tata Play had received approval for an IPO in May 2023 from Securities and Exchange Board of India (SEBI).