Zomato To Buy Paytm's Entertainment Ticketing Business In ₹2,048 Cr Deal

Paytm is set to offload its entertainment ticketing business to Zomato for a whopping ₹2,048 crore. This decision is part of Paytm’s plan to concentrate more on its primary payments and financial services.

What Happened: The news was confirmed by One 97 Communications Limited (OCL), Paytm’s parent company, on August 21, 2024. The deal encompasses Paytm’s entertainment ticketing business, which includes ticketing for movies, sports, and events. The transaction is valued at ₹2,048 crores on a cash-free, debt-free basis.

Under the deal, OCL will transfer its entertainment ticketing business to Zomato. This will be done by shifting OCL's entertainment ticketing business to its wholly-owned subsidiaries, Orbgen Technologies Pvt Limited (OTPL) and Wasteland Entertainment Pvt Ltd (WEPL), and then selling a 100% stake in OTPL and WEPL to Zomato. These subsidiaries operate the TicketNew and Insider platforms, respectively. The agreement also includes the transfer of around 280 employees from the entertainment ticketing business.

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A Paytm spokesperson expressed gratitude towards the team that built the entertainment ticketing business and stated that this move would allow Paytm to focus on long-term growth in its core areas. The deal is expected to be finalized within this quarter, subject to the fulfilment of all closing conditions.

Earlier this week, Antfin sold 136 million shares or about a 2% stake in Zomato in a block deal worth $408 million (₹3,421 crore). In August, UBS had maintained a “buy” call while increasing its target to ₹320 for Zomato, a 19% upside from the previous day’s close.

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