Paytm-Zomato Deal: Paytm will sell ticketing business to Zomato for Rs 2048 crore; Know the details
Paytm has decided to sell its entertainment ticketing business. Paytm’s parent company One97 Communications Limited (OCL) has announced the sale of its movie, sports and event (live performance) ticketing business to Zomato Limited for Rs 2,048 crore. The boards of directors of both the companies have approved the all-cash deal.
Under this agreement, the entertainment ticketing business of One97 Communications will be transferred to its wholly-owned subsidiaries – Orbgen Technologies Private Limited (OTPL) and Westland Entertainment Private Limited (WEPL). After this, 100 percent stake in these subsidiaries will be sold to Zomato.
Post completion of the deal, Zomato will operate a new app called ‘District’ for its entertainment ticketing business. OCL said in the statement that despite the sale of this business to Zomato, during the transition period of the next 12 months, these tickets can be booked only on Paytm’s app.
Under this deal, Zomato will completely acquire OTPL, engaged in the movie ticket business, for Rs 1,264.6 crore, while it will buy Westland Entertainment Pvt Ltd, engaged in event organizing, for Rs 783.8 crore. OCL said the deal will also include approximately 280 existing employees of the entertainment ticketing business.
After this deal, the scope of Zomato’s business will increase. As of now, Zomato provides an online platform related to the supply of food products. But now he will also get the business of booking show tickets.
