Tata Group is in advanced talks with Temasek Holdings Pte to buy back a stake in its entertainment content distribution platform at a valuation of more than $1 billion, according to people familiar with the matter.
The Indian conglomerate and the Singaporean state investor are in the final stages of discussions around the interest of about 20 percent in Tata Play Ltd., the people said, asking not to be identified as the information isn’t public.
Tata Group could potentially cement its grip on the platform, formerly known as Tata Sky, as it’s considering buying a stake held by its flagship private equity fund Tata Opportunities Fund, the people said.
Discussions are ongoing and there’s no certainty that Temasek and Tata Play will proceed with a deal, the people said. A Tata Group representative didn’t offer any immediate comment, while a Temasek spokesperson declined to comment, Bloomberg reported.
Tata Group was considering making an offer to buy back Temasek’s stake of about 20 percent of the content distribution platform, Bloomberg News reported in July. The conglomerate was weighing delaying a potential initial public offering for Tata Play, despite receiving the green light from regulators to proceed, people familiar with the matter said at the time.
A joint venture between Tata Group and Walt Disney Co.’s Twenty-First Century Fox Inc., Tata Play provides pay television via set-top boxes and over-the-top video streaming through its app, according to the conglomerate’s website. It has a pan-India footprint of 23 million connections.