Food delivery company Zomato and financial tech company Paytm have confirmed they are in talks about Zomato acquiring Paytm’s movies & events business. Both companies mentioned this in official statements on Monday.
Zomato said, “We are discussing this deal with Paytm, but no final decision has been made yet that needs approval from our board or requires a formal announcement.” These talks are part of their plan to strengthen their entertainment-related services.
Zomato to Acquire Paytm’s Movies & Events Business
Zomato is in talks with Paytm about buying its movie and ticketing business to strengthen its entertainment services. Both companies have not disclosed the deal’s value, but it is estimated to be between Rs 1,600 crore and Rs 2,000 crore. If it goes through, this would be Zomato’s second-largest purchase after buying Blinkit in 2022 for $569 million.
Paytm has confirmed it is exploring strategic opportunities to boost shareholder value. The company is considering transferring its entertainment business, part of its marketing services, though it didn’t mention Zomato specifically.
Paytm Focuses on Payment Services and Digital Commerce
Paytm said it is focusing on payment and financial services and digital goods commerce to help its merchants grow. The company is in early discussions with Zomato about selling its movie and ticketing business, but no final agreements have been made yet. Paytm noted that any information about these talks is speculative right now.
This comes as Paytm is working to regain its market position by focusing more on payments and financial services. The company is concentrating on businesses that can grow and become profitable. Zomato, meanwhile, is looking to boost its entertainment services. Last week, it announced a Rs 100 crore investment in Zomato Entertainment, which includes its live events and ticketing business.
Zomato Plans More Investments in Blinkit
If the deal with Paytm goes through, it would be Zomato’s second-largest acquisition after buying Blinkit (formerly Grofers) in 2021 for ₹4,447 crore. Zomato is focusing more on quick commerce and plans to invest an additional ₹300 crore in Blinkit, bringing its total investment to over ₹2,300 crore.
On Friday, Zomato’s stock rose 0.7 percent to ₹186.19. It has gained about 50 percent in 2024.
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