In Talks With Paytm For Movie Ticketing Business, No Deal Yet: Zomato

Paytm also clarified through a regulatory filing that the ongoing discussions regarding the potential transfer of its entertainment business to Zomato are at a preliminary stage

Zomato's pursuit of Paytm’s events and movie ticketing business strategically aligns with its broader objective to cater to consumer demand across multiple sectors ( Image Source :PTI, Getty )

Food delivery platform Zomato said on Sunday that it is currently engaged in discussions to acquire Paytm's movie ticketing and events business. This strategic decision aligns with Zomato's strategy to enhance its range of 'going out' services. This statement followed media reports indicating advanced negotiations for a potential Rs 1,500-crore deal between One97 Communications Ltd, Paytm's parent company, and Zomato.

The food delivery giant said in an exchange filing, "We acknowledge that we are in discussions with Paytm for the 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 discussion is being undertaken with an intent to further strengthen our going-out business and is in line with our stated position of focusing only on our four key businesses," the company added.

Paytm also clarified through a regulatory filing that the ongoing discussions regarding the potential transfer of its entertainment business to Zomato are at a preliminary stage and do not involve any binding agreements necessitating regulatory approval or public disclosure. "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," it said.

Zomato's pursuit of Paytm’s events and movie ticketing business strategically aligns with its broader objective to cater to consumer demand across multiple sectors, encompassing not only food and grocery but also entertainment services.

Meanwhile, a successful deal with Zomato would allow Paytm to focus on critical sectors such as travel, deals, and cashback, which are essential for expanding its merchant network and enhancing overall sales performance.