Zomato Eyes Acquisition of Paytm's Movies and Ticketing Business
Zomato has confirmed that it is in talks to acquire Paytm's movies and ticketing business, though no binding decision has been reached yet. The potential deal aims to bolster Zomato's 'Going-out' business, aligning with its focus on core operational areas.
In a recent stock exchange filing, Zomato stated that the discussions are "with an intent to further strengthen our Going-out business and is in line with our stated position of focusing only on our four key businesses currently”. Financial terms of the proposed acquisition were not disclosed, but market reports suggest it could value Paytm's unit at around Rs 1,500 crore.
“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”, Zomato elaborated in its filing.
This acquisition, if finalized, would be Zomato's second-largest after its 2021 purchase of Blinkit, a quick commerce platform acquired in an all-stock deal worth Rs 4,447 crore. Zomato has since invested an additional Rs 300 crore in Blinkit, anticipating that it will soon eclipse its core food delivery business in terms of growth potential.
In parallel, Zomato plans to invest Rs 100 crore in Zomato Entertainment, its events division. This arm specializes in curating and selling tickets for concerts, parties, and festivals, aiming to expand Zomato's presence in the entertainment sector and enhance its service offerings.
As negotiations continue, Zomato remains focused on strategic acquisitions and investments that support its growth objectives and strengthen its market position.
