Zomato preparing to buy Paytm’s movie and event business, company confirmed
Food delivery company Zomato has confirmed that it is in discussions to buy Paytm’s movie and events business. The company said in a regulatory filing, ‘We have noticed that there are reports in the media that Zomato is in talks to acquire Paytm’s movies, ticketing business. This voluntary disclosure is being made to clarify our position on this matter. We acknowledge that we are in discussions with Paytm for the above transaction. It was said in the filing that this conversation is being done with the intention of further strengthening our going-out business.
Paytm also confirmed
In a separate filing, Paytm also confirmed the ongoing discussions, but did not name Zomato. Paytm said the possible transfer of its entertainment business, which is part of its marketing services, is one of the opportunities being considered. Paytm plans to focus on payments and financial services as well as digital goods commerce. She said any ongoing discussions are preliminary and non-binding, mirroring Zomato’s statement.
Plan to take forward the outgoing offering
According to media reports, this strategic move aligns with Zomato’s plans to enhance its ‘going out’ offering. Bloomberg had earlier reported that Paytm is in talks with Zomato to sell its movie and event ticketing division as part of a strategic overhaul. The potential deal could value Paytm’s films and events business at around ₹1,500 crore.
What is the share price?
Shares of Paytm had closed at Rs 424.90 on Friday, down 0.84 per cent or Rs 3.60. Its 52 week high is Rs 998.30. Whereas, 52 week low is Rs 310. At the same time, Zomato shares closed at Rs 186.20 on Friday with a gain of 0.70 per cent or Rs 1.30. 52 week high of this share is Rs 207.30. Whereas, 52 week low is Rs 72.55.
