Tata Group is in advanced talks with Temasek Holdings Pte to purchase a 20% stake in Tata Play, according to a report by Bloomberg. The acquisition deal is likely to value the entertainment content distribution platform at more than $1 billion.
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Tata Group and the Singaporean state investor are currently in the advanced stages of their discussions regarding a potential stake of approximately 20% in Tata Play Ltd. However, it's important to note that there is no guarantee that a deal will be finalized by both parties - Temasek and Tata Play, sources were quoted as saying by Bloomberg.
As per information available on the conglomerate's website, Tata Play is a collaborative venture between Tata Group and Twenty-First Century Fox Inc., a subsidiary of Walt Disney Co.
This venture offers pay television services through set-top boxes and also provides over-the-top video streaming via its app. Notably, Tata Play boasts a widespread presence across India with a subscriber base of 23 million connections.
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In July, another Bloomberg report revealed that Tata Group was considering making an offer to buy back Temasek’s stake of about 20% in Tata Play. The conglomerate had obtained the necessary regulatory approvals to move forward with an initial public offering (IPO) for Tata Play but was contemplating a potential delay, as per sources.