Zomato Confirms Talks with Paytm Over Potential Acquisition of Movie and Events Business

Paytm & Zomato
Preeti Bali / 6:19 am / June 17, 2024

Food delivery giant Zomato has officially confirmed ongoing discussions with Paytm regarding the potential acquisition of Paytm’s movies and events business. The company made a voluntary disclosure to address circulating news articles and clarify its position on the matter.

Zomato’s Strategic Focus

Zomato stated that the discussions align with its goal of bolstering its “going-out” business and are consistent with its focus on its four key business areas. The company emphasized that no binding decision has been made at this stage and that the talks are still exploratory.

Paytm’s Confirmation and Strategic Shift

In a separate filing, Paytm also confirmed the ongoing discussions without explicitly naming Zomato. Paytm mentioned that the potential transfer of its entertainment business, part of its marketing services, is one of the options being considered. The company is prioritizing its payment and financial services, as well as digital goods commerce, indicating a strategic shift away from non-core businesses.

Potential Deal and Valuation

Media reports suggest that the deal could be valued at around ₹1,500 crore, making it Zomato’s second-largest acquisition after Blinkit. The move aligns with Zomato’s strategy to expand its offerings beyond food delivery and into the broader entertainment sector.

Zomato’s Quick Commerce Push and Market Reaction

Zomato has also been focusing on quick commerce, recently announcing an additional ₹300 crore investment in its subsidiary Blinkit, amid growing competition in the market. The company’s stock performance in response to this news will be closely watched when Indian equity markets reopen on Tuesday.

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