Zomato confirms talks with Paytm to acquire fintech firm's movies and events business
Jun 17, 2024
New Delhi [India], June 17 : Food delivery company Zomato is in talks with Paytm to acquire the fintech company's movies and events businesses, the company said in its filing on the Stock exchange.
Zomato in a filing on the stock exchange on June 16 said, "We acknowledge that we are in discussions with Paytm for the aforementioned transaction, however, no binding decision has been taken at this stage that would warrant a Board approval and subsequent disclosure in accordance with applicable law."
The food aggregator further said, "We have noticed that there are certain news articles circulating in the mainstream media with the subject "Zomato in talks to acquire Paytm's movies, ticketing business". This voluntary disclosure is being made to clarify our stance on the matter given that any transaction that is considered potentially meaningful may create uncertainty in the market."
Paytm also confirmed the talks and said, "The Company routinely explores various strategic opportunities aimed at enhancing shareholder value. The potential transfer of Paytm's Entertainment business, a component of our Marketing Services, is one opportunity under consideration."
Paytm added that they have indicated in their earnings call that going forward the company will focus on payment and financial services.
"As noted in our earnings call, our focus will be on payment and financial services along with digital goods commerce, which are designed to help our merchants scale their businesses," it said.
It also said that discussions with Zomato are ongoing, but at a very preliminary stage
"However, any discussions currently underway are preliminary and do not involve any binding agreements that require approval or disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, or other applicable laws. As such, any information pertaining to these discussions should be considered speculative at this time," Zomato said.
As per media reports the potential size of the deal may be valued between Rs 1500-Rs 2000 crore.
Zomato clarified in the filing that the intent behind the move is to strengthen its "Going-out" business. The company said it aims to strengthen its position in its four key business segments currently.
The deal is finalised will be the second big acquisition of Zomato after the food aggregator acquired quick commerce platform Blinkit (previously Grofers) in an all-stock deal worth Rs 4,447 crore.
