Zomato to buy Paytm’s movie and events ticketing biz for ₹2,048 crore

Zomato is set to acquire Paytm's entertainment and ticketing business for 2,048.4 crore or $244 million, as the food delivery giant aims to strengthen its presence in the ‘going-out’ sector.

Vaamanaa Sethi
Published21 Aug 2024, 09:01 PM IST
Zomato to buy Paytm's movie and event ticketing units for $244 million
Zomato to buy Paytm’s movie and event ticketing units for $244 million(REUTERS)

Zomato is set to acquire Paytm's entertainment and ticketing business for 2,048.4 crore or $244 million, as the food delivery giant aims to strengthen its presence in the "going-out" sector. Meanwhile, Paytm, facing challenges, intends to concentrate on its core financial services.

Both companies' boards approved the cash transaction on August 21, as disclosed to the exchanges.

Under the agreement, One 97 Communications will transfer its movie ticketing business to its wholly-owned subsidiary OTPL and its sports and events ticketing business to another wholly-owned subsidiary, WEPL, through a slump sale.

Paytm, which has been BookMyShow's main competitor since 2017, is set to transfer its market share to Zomato by selling its 'TicketNew' platform, which focuses on movie ticket sales, and its 'Insider' platform, which manages tickets for live events.

Paytm developed its movie ticketing business internally and acquired Insider and TicketNew for 2.68 billion rupees between 2017 and 2018.

Also Read | Paytm to conduct 24th AGM on September 12 via video conferencing

Zomato plans to acquire OCL's entire stake in OTPL and WEPL through a share purchase agreement, making both OTPL and WEPL wholly-owned subsidiaries of the food delivery company.

Additionally, Zomato will conduct a primary infusion into OTPL and WEPL through a preferential allotment, matching the amount of the slump sale consideration. This infusion will be used to settle the amount payable to OCL for the slump sale.

The acquisition cost for OTPL is estimated at 1,264.6 crore, while for WEPL, it is 783.8 crore, according to the filing. Zomato has indicated that the acquisition is expected to be completed within 90 days.

OTPL, established on November 23, 2007, in India, specializes in listing and selling movie tickets, along with other services. WEPL, incorporated on December 21, 2015, in India, focuses on listing and selling event tickets and additional services.

As of March 31, 2024, the audited turnover for OTPL was 13.14 crore, while WEPL reported a turnover of 236.03 crore.

Catch all the Business News , Corporate news , Breaking News Events and Latest News Updates on Live Mint. Download The Mint News App to get Daily Market Updates.

MoreLess
First Published:21 Aug 2024, 09:01 PM IST
Business NewsCompaniesZomato to buy Paytm’s movie and events ticketing biz for ₹2,048 crore

Get Instant Loan up to ₹10 Lakh!

  • Employment Type

    Most Active Stocks

    Bandhan Bank share price

    185.00
    03:58 PM | 28 OCT 2024
    16.7 (9.92%)

    ICICI Bank share price

    1,292.65
    03:59 PM | 28 OCT 2024
    37.15 (2.96%)

    HDFC Bank share price

    1,734.30
    03:59 PM | 28 OCT 2024
    -8.3 (-0.48%)

    Bharat Electronics share price

    269.95
    03:57 PM | 28 OCT 2024
    -2.6 (-0.95%)
    More Active Stocks

    Market Snapshot

    • Top Gainers
    • Top Losers
    • 52 Week High

    Firstsource Solutions share price

    372.75
    03:55 PM | 28 OCT 2024
    40 (12.02%)

    Poly Medicure share price

    2,624.70
    03:56 PM | 28 OCT 2024
    109.65 (4.36%)

    Coforge share price

    7,705.45
    03:29 PM | 28 OCT 2024
    -36.75 (-0.47%)

    Deepak Fertilisers & Petrochemicals Corporation share price

    1,119.75
    03:29 PM | 28 OCT 2024
    -26.15 (-2.28%)
    More from 52 Week High

    Interglobe Aviation share price

    4,015.50
    03:47 PM | 28 OCT 2024
    -349.15 (-8%)

    Cholamandalam Investment & Finance Company share price

    1,283.00
    03:29 PM | 28 OCT 2024
    -91.6 (-6.66%)

    Craftsman Automation share price

    4,942.05
    03:29 PM | 28 OCT 2024
    -292.6 (-5.59%)

    Mahanagar Gas share price

    1,418.40
    03:29 PM | 28 OCT 2024
    -78.15 (-5.22%)
    More from Top Losers

    Bandhan Bank share price

    185.00
    03:58 PM | 28 OCT 2024
    16.7 (9.92%)

    Archean Chemical Industries share price

    650.30
    03:46 PM | 28 OCT 2024
    54.2 (9.09%)

    Vodafone Idea share price

    8.25
    03:59 PM | 28 OCT 2024
    0.58 (7.56%)

    Poonawalla Fincorp share price

    319.90
    03:57 PM | 28 OCT 2024
    22.25 (7.48%)
    More from Top Gainers

    Recommended For You

      More Recommendations

      Gold Prices

      • 24K
      • 22K
      Bangalore
      80,295.00-10.00
      Chennai
      80,301.00-10.00
      Delhi
      80,453.00-10.00
      Kolkata
      80,305.00-10.00

      Fuel Price

      • Petrol
      • Diesel
      Bangalore
      102.86/L0.00
      Chennai
      100.75/L0.00
      Kolkata
      104.95/L0.00
      New Delhi
      94.72/L0.00

      Popular in Companies

        HomeMarketsloanPremiumMint Shorts
          翻译: