Zomato has announced its plan to acquire Paytm’s movie and event ticketing business for Rs 2,084.4 crore. With this decision, Zomato will not only be able to expand by strengthening its “going out” business but Paytm will also be able to focus on the core business of the company. As per the statement made by One97 Communication Ltd(OCL), “it has entered into definitive agreements for the sale of its entertainment ticketing business that includes movies, sports and events (live performances) ticketing to Zomato Ltd“
“This deal, valued at ₹2,048 crore on a cash-free, debt-free basis, stands as a testament to the value Paytm has created through its entertainment ticketing business, bringing choice and convenience to millions of Indians with its services and scale,” it added.
“ OCL will transfer its entertainment ticketing business to Zomato by transferring the ticketing business to its 100 percent subsidiaries, Orbgen Technologies Pvt Ltd (OTPL) and Wasteland Entertainment Pvt Ltd (WEPL), and selling 100 percent stake in OTPL and WEPL, which operate the TicketNew and Insider platforms, respectively, to Zomato,” it added.
The ticketing and entertainment options on Paytm will be there until the next 12 months though users will be asked to switch to Zomato’s upcoming app for the “going out” segment. It will also incentivize customers to move to the new app called “District”.
