In a surprising turn, Bharti Airtel and Tata Group have called off their much-anticipated merger of DTH services, Airtel Digital TV and Tata Play, valued at ₹7,000 crore. The decision, reached by mutual consent, has left industry watchers puzzled. “We couldn’t arrive at a mutually satisfactory resolution,” Airtel stated in a stock exchange filing, hinting at deeper complexities that derailed the deal.

Announced in February 2025, the merger aimed to consolidate the loss-making DTH businesses of both companies through a share-swap arrangement. The deal would have positioned Airtel as a dominant player in the DTH market, holding over 50% stake in the merged entity. Analysts saw it as a strategic counter to the Reliance-Disney-backed JioStar. The merger promised to be the industry’s biggest since the 2016 Dish TV-Videocon d2h tie-up. However, unresolved disputes over management control, financial valuations, and market dynamics scuttled the plan. Sources reveal Tata Group sought two board seats in the merged entity, while Airtel insisted on retaining senior management control. Additionally, disagreements over the valuation of their DTH businesses—pegged between ₹6,000-7,000 crore—and equity distribution proved insurmountable.

The rise of OTT platforms has further complicated the DTH landscape, with declining demand forcing both companies to reassess their strategies. “The shift to streaming services has hit DTH hard. This may have led to differing visions for the merger’s future,” said telecom analyst Rajiv Sharma. The cancellation leaves Airtel and Tata Play to navigate a competitive market independently, grappling with evolving consumer preferences.

Moving forward, both companies face the challenge of revitalizing their DTH offerings amid fierce competition. Industry experts suggest they may pivot toward bundled services or explore partnerships to stay relevant. For now, the collapse of this high-stakes merger underscores the complexities of aligning corporate interests in a rapidly changing media landscape.