Zomato in discussion to acquire Paytm's movies and events business
Zomato has officially acknowledged that it is in talks with Paytm regarding the acquisition of Paytm's movies and events business
New Delhi: Zomato is in discussions with Paytm regarding acquiring Paytm’s movies and events business.
In a regulatory filing, Zomato clarified that although discussions with Paytm are ongoing, no definitive decision has been made at this time.
“We have noticed that there are certain news articles circulating in the mainstream media with the subject ‘Zomato in talks to acquire Paytm’s movies, ticketing business’. This voluntary disclosure is being made to clarify our stance on the matter given that any transaction that is considered potentially meaningful may create uncertainty in the market. 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,” it said in a regulatory filing.
They anticipate making a formal announcement later this month, possibly as early as this week.
The food delivery company, is in advanced talks to purchase Paytm’s movie ticketing and events division, as it seeks to strengthen its focus on ‘going-out’ ventures under the leadership of Deepinder Goyal. According to sources familiar with the matter, the potential deal could value Paytm’s division between Rs 1,600 to Rs 1,750 crore. Including receivables from cinema exhibitors, the valuation could potentially reach Rs 2,000 crore.
Zomato’s second largest acquisition to date-
Zomato’s pursuit of Paytm’s events and movie ticketing business reflects its strategy to broaden its footprint across various consumer demand segments such as food, groceries, and entertainment. Zomato intends to integrate these offerings to cater to a wider range of consumer needs and strengthen its competitive standing in the market.
Should the acquisition materialize, it would represent Zomato’s second largest deal to date, after its acquisition of Blinkit, a quick commerce platform, in 2022 for Rs 4,447 crore in an all-stock transaction.