Zomato to Acquire Paytm’s Entertainment Business for ₹2,048.4 Crore
The food delivery giant Zomato has announced its plans to acquire Paytm’s entertainment and ticketing business for a whopping ₹2,048.4 crore ($244 million). This strategic move aims to bolster Zomato’s presence in the “going-out” sector, allowing users to book tickets for movies, sports, and events seamlessly.
Paytm, facing intense competition, has decided to focus on its core financial services, divesting its entertainment and ticketing business. The deal, approved by both companies’ boards on August 21, involves a cash transaction.
Here’s how the acquisition will unfold:
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One 97 Communications will transfer its movie ticketing business to OTPL and sports/events ticketing business to WEPL through a slump sale.
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Zomato will acquire OCL’s entire stake in OTPL and WEPL, making them wholly-owned subsidiaries.
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A primary infusion will be conducted into OTPL and WEPL to settle the amount payable to OCL.
The acquisition cost for OTPL is estimated at ₹1,264.6 crore, while WEPL’s cost is ₹783.8 crore. The deal is expected to be completed within 90 days.
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