Zomato, the online food delivery giant, is planning to acquire Paytm’s entertainment ticketing business for ₹2,048 crore, according to a joint announcement made by the two companies on Wednesday. This proposed acquisition aims to strengthen Zomato’s “going-out” segment while allowing Paytm to focus more sharply on its core payments and financial services operations.
The proposed deal includes Paytm’s movie, sports, and live event ticketing operations, which are expected to be transferred on a cash-free, debt-free basis. The boards of both Zomato and One 97 Communications Ltd (OCL), Paytm’s parent company, have approved the terms of the acquisition.
As outlined in the agreement, OCL will first transfer its entertainment ticketing business to its 100% subsidiaries, Orbgen Technologies Pvt Ltd (OTPL) and Wasteland Entertainment Pvt Ltd (WEPL). Zomato will then acquire a 100% stake in these subsidiaries, which operate the TicketNew and Insider platforms, respectively. Additionally, around 280 employees from the entertainment ticketing division will also transition as part of the acquisition.
During a transition period of up to 12 months following the acquisition, Paytm’s entertainment ticketing services will remain accessible on its app, ensuring continuity for users while Zomato works on integrating these services into its platform.
Once completed, this acquisition is expected to significantly bolster Zomato’s presence in the entertainment and leisure sector, further expanding its service offerings for consumers
Source: CNBCtv18.
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