MUMBAI: Tata Sons has secured regulatory approval to tighten its grip on the arguably the country’s best distribution platform operator. The Competition Commission of India (CCI) has given the green light for the conglomerate to acquire a 10 per cent stake in Tata Play from Temasek-owned Baytree Investments. 

The transaction, valued at an unconfirmed $100 million, boosts Tata Sons' ownership to 70 per cent, with Walt Disney holding the remaining 30 per cent. Industry insiders note the deal values Tata Play at a modest $1 billion—a significant haircut from its earlier publicly known  $3 billion valuation.

"Commission approves the acquisition of certain additional shareholding in Tata Play Limited by Tata Sons Pvt Ltd  from Baytree Investments (Mauritius) Pte Ltd," the CCI declared in Monday's press release.

The move comes as speculation swirls around a potential merger between Tata Play and Bharti Airtel's rival DTH business. Both companies are reportedly engaged in bilateral talks, with sources suggesting a share-swap arrangement that would make Airtel the majority stakeholder with 52-55 per cent of the combined entity. Tata Play's stakeholders, including Disney, would retain 45-48 per cent, according to unconfirmed media reports.

Airtel's senior management is expected to lead the merged business, with Tata angling for two board seats. 

 For Tata Sons, already registered as a "Systemically Important Non-Deposit Taking Core Investment Company" with the Reserve Bank of India, this represents another strategic tile in its sprawling business mosaic.

The regulatory approval mirrors last year's CCI nod for Bharti Airtel's acquisition of a 20 per cent stake in its DTH arm, Bharti Telemedia, from Warburg Pincus affiliate Lion Meadow Investment Ltd  for Rs 3,126 crore.