Zomato and Paytm are listed as two of the most used apps by people around the globe. The former is a food delivery app and the latter deals with online transactions. The two are in discussions these days. As part of the fintech’s plan to sell off its non-core businesses, Paytm is in advanced talks to sell Zomato its movie and event ticketing business. If the purchase goes through, Paytm’s business sector might be valued at almost Rs 2,000 crore. Continue reading if you wish to know more about the news.
Will Zomato Acquire Paytm’s Movie, Ticketing Business?
The online meal delivery company Zomato and Paytm are in the advanced stages of their talks. According to the sources, discussions are still ongoing and no decision has been taken. According to an exchange filing, food delivery company Zomato has officially announced that it is in talks to purchase Paytm’s movie and ticketing division, ending rumors.
This would be one of Zomato’s biggest buyouts if the deal closes. Before this, Zomato purchased Uber Eats in 2020. In an all-stock transaction valued at Rs 4,447 crore, Zomato also acquired Blinkit, formerly known as Grofers, in 2021. Zomato’s objective of growing its “Going-out” segment—which includes events, dining out, and entertainment services—fits very nicely with this possible acquisition. The food delivery firm also intends to provide a more comprehensive service to its users by integrating Paytm’s movie and ticketing business, embracing a wider range of experiences and activities.
In contrast, Paytm has been assessing several alternatives to maximize the range of businesses it offers. Paytm might be able to concentrate more on its core financial services and other important areas if it decides to sell its movie and ticketing businesses.
Zomato’s Stance
“We acknowledge that we are in discussions with Paytm for the aforementioned transaction, however, no binding decision has been taken at this stage that would warrant a board approval and subsequent disclosure under applicable law,” stated Zomato in the exchange filing.
“The above discussion is being undertaken with an intent to further strengthen our Going-out business and is in line with our stated position of focusing only on our four key businesses currently,” it informed.
Paytm’s Say
In an exchange filing, Paytm stated that it has been in talks to potentially transfer its movie ticketing business. It stressed that these are still early and non-binding discussions.
“The company routinely explores various strategic opportunities aimed at enhancing shareholder value. The potential transfer of Paytm’s entertainment business, a component of our marketing services, is one opportunity under consideration. As noted in our earnings call, our focus will be on payment and financial services along with digital goods commerce, which are designed to help our merchants scale their businesses,” the fintech giant stated.
What do you think about the potential deal? Will Zomata acquire Paytm’s movie ticketing sector? Let us know what you think about this.
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