Zomato Confirms Discussions for Paytm’s Movies, Events Business

Gurgaon based Zomato confirmed it is in discussions to acquire Paytm’s movies and ticketing business. The company said in a stock exchange filing. “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 in accordance with applicable law.”

“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 added.

ET reported on June 16 that Zomato is looking to acquire Paytm’s movie booking and events unit in a deal that may value Paytm’s vertical at around ₹1,600-1,750 crore. Post the addition of receivables from cinema exhibitors, the valuation could go up to ₹2,000 crore, people aware of the matter said.

Paytm also confirmed discussions regarding the potential transfer of its entertainment business in an exchange filing, saying that all discussions are preliminary and non-binding at this stage.

Paytm added that they have indicated in their earnings call that going forward the company will focus on payment and financial services.”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,” it said.

If the transaction goes through, it will be among the largest buyouts for Zomato after it acquired Uber Eats in 2020 and took over quick commerce platform Blinkit (then Grofers) in 2021 in an all-stock deal for ₹4,447 crore.

S-ET Image Source: Google

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