Bharti is set to become BT’s largest shareholder by acquiring a 25% stake from Altice for $4 billion

BT, the U.K.’s former leading telecom carrier, is gaining a significant new investor as telecom companies seek to strengthen their positions in the rapidly evolving tech and communications market. Bharti, the Indian tech and telecom giant that owns Airtel, announced it will acquire a 24.5% stake in BT currently held by Altice.

Based on BT’s market capitalization of around £13 billion ($16 billion) at the time of the deal, the stake is valued at approximately $4 billion. Bharti stated it would immediately purchase 9.99% of the stake, with plans to acquire the remainder once regulatory approval is obtained.

Altice has been facing challenges due to its debt-fueled acquisitions and corporate controversies, as highlighted in late 2023. The company, which holds stakes in other tech and communications firms, initially acquired its stake in BT in multiple phases, starting in 2021 and later in May 2023.

BT’s share price has since declined, partly due to the broader downturn in tech and communication stocks. Altice now appears to be divesting some of its assets, with this deal following its recent sale of the media platform Teads to web recommendation platform Outbrain for $725 million in cash, deferred payments, and stock, in a transaction valued at $1 billion.

The advent of 5G and AI presents both challenges and opportunities for telecom companies, depending on how they adapt. Bharti cited these technologies as key reasons for the deal, likely seeking improved economies of scale in purchasing, development, and strategy as competition intensifies from tech giants offering new communication methods that bypass traditional telecom infrastructure.