Zomato Paytm Acquisition Talks Confirmed

The rumors are finally confirmed - Zomato and Paytm are in talks for a potential acquisition. This move has left many in the tech industry buzzing with excitement and curiosity.

Paytm's parent company, One97 Communications, has confirmed that they are indeed in discussions with Zomato, but the details of the deal remain unclear.

The acquisition talks have been ongoing for several months, with reports suggesting that Paytm is looking to strengthen its food delivery business. Zomato, on the other hand, is reportedly looking to expand its digital payments offerings.

The potential partnership could be a game-changer for the Indian food delivery market, which is expected to reach $8.5 billion by 2025.

Zomato has completed the acquisition of Paytm's entertainment and ticketing business, valued at ₹2,048 crores on a cash-free, debt-free basis.

The acquisition involves Paytm's subsidiaries WEPL and OTPL, which operate the TicketNew and Insider platforms respectively. 280 existing employees from the entertainment ticketing business will be part of Zomato.

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The deal will see Zomato take over the entertainment ticketing business of Paytm, including its TicketNew and Insider platforms. During a transition period of up to 12 months, movie and event tickets will continue to be available on the Paytm app, as well as on the TicketNew and Insider platforms.

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Zomato has completed the acquisition of Paytm's entertainment and ticketing business, a deal valued at ₹2,048 crores on a cash-free, debt-free basis.

The acquisition was completed after a definitive agreement was signed on August 21, as confirmed by Paytm's stock exchange filing.

The entertainment ticketing business will be transferred to Zomato's 100% subsidiaries, Orbgen Technologies Pvt Limited (OTPL) and Wasteland Entertainment Pvt Ltd (WEPL).

A total of 280 existing employees from the entertainment ticketing business will join Zomato as part of the acquisition.

During a transition period of up to 12 months, movie and event tickets will continue to be available on the Paytm app, as well as on the TicketNew and Insider platforms.

The movie ticketing business was built from the ground up by Paytm, with additional investments made to scale up the business after acquiring TicketNew and Insider for a total consideration of ₹268 crores in 2017-2018.

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Zomato has confirmed that it's in discussions with Paytm to acquire Paytm's movies and ticketing business.

The talks come after reports said that Zomato was looking to acquire Paytm's movies and ticketing vertical for about Rs 1,600-1,750 crore ($190-210 million).

Zomato stated that the discussions are being undertaken with an intent to further strengthen its going-out business and are in line with its stated position of focusing only on the company's four key businesses currently.

The acquisition would allow Zomato to further expand its offering in events business, taking on the likes of BookMyShow.

Zomato Entertainment, a subsidiary that controls the firm's live events and ticketing businesses, will be the beneficiary of this acquisition.

Paytm has also confirmed the discussions, but clarified that any discussions currently underway are preliminary and do not involve any binding agreements.

The deal is still in its early stages, and no binding decision has been taken at this stage that would warrant a Board approval and subsequent disclosure in accordance with applicable law.

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The news of the acquisition sent shockwaves through the stock market, with both companies' stock prices experiencing a significant boost.

Zomato's shares gained 2.71% following the announcement, a clear indication of investor confidence in the deal's potential to drive growth and value for the company.

Paytm's stock jumped 5.47%, a notable increase that suggests investors believe the acquisition will have a positive impact on the company's future prospects.

The graph illustrating the stock price movement indicates a strong correlation between the acquisition and increased investor confidence.

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