Big move! Zomato likely to acquire Paytm＊s movies and events business 每 All you need to know!
In a significant strategic move, food delivery giant Zomato founded by?Deepinder Goyal is in advanced talks to acquire Paytm's movie and events ticketing business. This expected acquisition comes as part of Paytm's strategy to divest its non-core assets, with the business vertical valued at around Rs 2,000 crore, according to TOI. Here's a detailed look at the ongoing discussions and what this could mean for both companies.
Paytm's Strategic Divestment
Paytm, the renowned fintech company, is looking to sell its movies and events ticketing business to Zomato. This sale aligns with Paytm's plan to focus on its core businesses of payment and financial services. By divesting non-core assets, Paytm aims to enhance shareholder value and streamline its operations.
Zomato Confirms Discussions
Zomato has officially confirmed that it is in discussions with Paytm regarding the acquisition of its movie and events ticketing business. In a recent stock exchange filing, Zomato stated that these discussions are aimed at bolstering its 'going-out' business segment, which includes offline experiences like restaurant dining and live events such as Zomaland.
No Binding Agreements Yet
Both companies have highlighted that the discussions are still in the preliminary stages. Zomato mentioned that no binding decisions have been made that would require board approval or public disclosure. Similarly, Paytm highlighted that it is exploring various strategic opportunities and that no formal agreements have been reached. Also read:?Zomato CEO Deepinder Goyal Launches New Feature That'll Suggest Healthy Options
Focus on Core Competencies
Paytm's decision to divest its movie and events business is part of a broader strategy to focus on payment and financial services. By concentrating on these areas, Paytm aims to support its merchants in scaling their businesses and enhancing their digital commerce capabilities.
Zomato's Growing 'Going-Out' Segment
For Zomato, acquiring Paytm's movie and events ticketing verticals would significantly enhance its 'going-out' segment. This division of Zomato has already seen substantial growth, with revenues increasing by over 100% year-on-year to Rs 93 crore in the March quarter. The integration of Paytm's ticketing services would complement Zomato's existing offerings and provide a seamless experience for users seeking offline entertainment options. Also Read:?Zomato Requests Customers To Avoid Ordering Food During ＆Peak Afternoon＊, Faces Backlash
Potential Impact on Customers
As Paytm merges its movies and events platform Insider into a single team, customers can continue to book tickets through the Paytm app. However, if the deal is finalised, Zomato is expected to integrate these services into its platform, potentially offering a unified solution for dining and entertainment bookings.
A Major Acquisition for Zomato
If this acquisition goes through, it would be Zomato's second-largest deal following its 2021 purchase of quick commerce platform Blinkit (formerly Grofers) in an all-stock deal worth Rs 4,447 crore, reported in Livemint. This move underscores Zomato's commitment to expanding its quick commerce operations, with plans to invest an additional Rs 300 crore into Blinkit, bringing the total investment to over Rs 2,300 crore.
Market Reactions and Future Prospects
The stock market's response to this news is anticipated on Tuesday, as Indian equity markets were closed on Monday due to an Eid-ul-Adha holiday. On the previous trading day, Zomato's stock ended 0.7% higher at Rs 186.19, reflecting a gain of around 50& in 2024 to date.
The potential acquisition of Paytm's movie and events business by Zomato marks a significant development in the Indian fintech and food delivery sectors. As both companies continue to explore strategic opportunities, this deal could reshape the landscape of online ticketing and offline entertainment, providing enhanced value to customers and shareholders alike. Keep an eye on further announcements as this story unfolds.
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