NEW DELHI, June 17
Food delivery giant, Zomato has confirmed that the company is in conversation with Paytm to acquire the company’s movie and events business. However, the company has yet not confirmed the evaluation of the deal. Earlier, it was speculated that the deal is pegged at Rs 1500 crore.
“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.
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,” Zomato said in an official statement. The company further claimed that the on-going discussion is being undertaken with an intent to further strengthen the business and is in line with the company’s stated position of focusing only on their four key businesses. Meanwhile, Paytm too clarified saying, “In response to recent media coverage regarding ‘ Zomato in talks to acquire Paytm’s movies, ticketing business,’ we would like to voluntarily clarify our position.
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. 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.”
The company further stated that 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.
After the acquisition of Grofers, now Blinkit, in 2021 it is assumed that this will be Zomato’s next big gig. As per the report, Zomato acquired Grofers in an all-stock deal of Rs 4,447 crore.
