Zomato in talks with Paytm to buy its movies and events business
Confirming the talks but not naming Zomato, Paytm, in a separate filing said the potential transfer of its entertainment business is one of the opportunities under consideration
Online food delivery platform Zomato confirmed that it is in discussions with Paytm to buy the financial technology company's movies and events business. However, no binding decision has been taken, said Zomato in a regulatory filing.
"We are in discussions with Paytm for the aforementioned transaction. However, no binding decision has been taken that would warrant a board approval and subsequent disclosure in accordance with applicable law," Zomato said.
The company disclosure followed news reports that Zomato was trying to acquire Paytm's movies and ticketing business.
"The above discussion is being undertaken 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," Zomato said.
Paytm confirms
In a separate filing, Paytm also confirmed the ongoing discussions but did not name Zomato.
It said the potential transfer of its entertainment business, which is part of its marketing services, is one of the opportunities under consideration.
Paytm plans to concentrate on payment and financial services as well as digital goods commerce.
According to media reports, the potential deal could value Paytm's movies and events business at ₹1,500 crore.
The acquisition, if it takes place, would be Zomato's second-largest, following its 2021 purchase of quick commerce platform Blinkit (formerly Grofers) in an all-stock deal worth ₹ 4,447 crore.