Zomato, an online food delivery platform, has confirmed that it is in talks with Paytm, a financial services major, to acquire its movies and ticketing business. However, no final decision has been made at this time. Zomato stated that the potential acquisition is aimed at enhancing its Going-out business and aligns with its strategy of focusing on its four key businesses.
Reports earlier indicated that the potential deal could value Paytm's movies and ticketing business at approximately Rs 1,500 crore. However, Zomato did not disclose any financial details at this stage.
“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,” said Zomato in its filing.
If finalised, this acquisition would be Zomato's second-largest purchase, following its acquisition of the quick commerce platform Blinkit in 2021, which was an all-stock deal worth Rs 4,447 crore.
Meanwhile, Zomato has invested Rs 300 crore in Blinkit as this segment is expected to surpass its core food delivery business. Furthermore, the company will infuse Rs 100 crore in Zomato Entertainment, its events arm, which specialises in curating and selling tickets for concerts, parties, and festivals.
In other news, Paytm has started laying off an undisclosed number of employees as part of a restructuring effort. They are also providing outplacement assistance to affected employees. The company stated that it is disbursing bonuses due to employees to ensure a fair and transparent process.
OCL is offering outplacement support to employees who have resigned as part of the restructuring. The company's human resource teams are actively collaborating with over 30 companies that are currently hiring, and providing assistance to employees who have opted to share their information, facilitating their immediate outplacement.
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