Tata Group in talks to reacquire Temasek's Tata Play stake: Report

Tata Group is in advanced negotiations to repurchase Temasek Holdings Pte's 20% stake in Tata Play, the entertainment content distribution platform, at a valuation surpassing $1 billion.

The final stages of discussions between Tata Group and the Singaporean state investor revolve around Temasek's interest in Tata Play Ltd, formerly known as Tata Sky, as reported by Bloomberg.

Established in 2001, Tata Play, a joint venture between Tata Group and Twenty-First Century Fox Inc, provides pay television services through set-top boxes and over-the-top video streaming via its app.

With its expansion into the realm of over-the-top streaming through Tata Play Binge, accessible on various platforms including Amazon Fire TV Stick, Tata Play Binge+ Smart Set Top box, Android TV, and its mobile app, the company has a substantial pan-India presence with 23 million connections.

Temasek currently holds a 20% stake in the content distribution platform, a venture it initially invested in back in 2007 when it was known as Tata Sky. Although discussions are ongoing, there is no assurance that a deal will be finalized between Temasek and Tata Play, according to the report.

Recently, Tata Play received regulatory approval for its initial public offering (IPO), marking a significant milestone for the company. This move is part of Tata Group's larger IPO strategy, following Tata Consultancy Services Ltd.'s $1.2 billion IPO in 2004.

Tata Play confidentially filed IPO documents with the Securities and Exchange Board of India (Sebi) in 2022, becoming the first company to initiate the IPO process without publicly disclosing sensitive information.

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