Zomato, the food delivery giant, on June 16, through a BSE regulatory filing confirmed the that the company is in discussion with the popular fintech brand, Paytm, related to acquisition of Paytm’s movies and events business.
This recent move by the company regarding the clarification on the the acquisition came after various media reports highlighting that the fintech brand is in talks with the delivery giant to sell of its movie ticketing business.
Zomato response
Zomato, in the regulatory filing, clarifying the reports said, "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."
Representative Image | Wikipedia
"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. The above 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 currently," the company further added in the exchange filing.
About the reports on acquisition
Earlier Bloomberg reported, the fintech is is in talks with Zomato to acquire its movie ticketing business and the agreement could estimate the worth of Paytm's movies and events business at about Rs 1,500 crore.
Paytm Insider is a website where you can book tickets online for cricket matches, live shows, and sports events.
Paytm response
Furthermore, Paytm in a separate exchange filing announced, "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."
Paytm | File
"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. However, 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. As such, any information pertaining to these discussions should be considered speculative at this time," the company added in the regulatory filing.
Share Performance
The shares of Zomato on Friday at 3:30 pm IST closed at Rs 186.19, up by 0.68 per cent.
Meanwhile, the shares of Paytm, ended the day at Rs 423.60, down by 1.04 per cent.
