Zomato has announced its acquisition of Paytm’s ticket booking business, with the transaction valued at INR 2,048 crore. Stakeholders are advised to monitor the stock performance of both companies closely. The boards of directors of both companies have approved this deal which will be done entirely in cash. Under this agreement, OCL’s entertainment ticket business will be transferred to its subsidiary companies Orbgen Technologies Private Limited (OTPL) and Westland Entertainment Private Limited.
One97 Communications Limited (OCL), the company that operates the Paytm brand, has announced the sale of its movie ticket business to Zomato for INR 2,048 crore. Apart from films, the entertainment ticket business also includes tickets for sports events and music concerts. Under this agreement, OCL’s entertainment ticket business will be transferred to its subsidiary companies Orbgen Technologies Private Limited (OTPL) and Westland Entertainment Private Limited.
Tickets will be booked on the new app
100 percent stake in subsidiary companies will be sold to Zomato. After the deal is completed, Zomato will operate a new app called ‘District’ for its entertainment ticket business. OCL said in a statement that despite the sale of this business to Zomato, these tickets will be booked only on Paytm’s app in the transmission period of the next 12 months. Informing about the firm agreement with Zomato, OCL said that the value of this deal would be INR 2,048 crore.
What will be the benefit to Zomato?
Under this deal, Zomato will buy OTPL, which is engaged in the movie ticket business, for Rs 1,264.6 crore, while it will buy Westland Entertainment Private Limited, which is engaged in organizing events, for INR 783.8 crore.
OCL said that about 280 existing employees of the entertainment ticket business will also be included in this deal. After this deal, the scope of Zomato’s business will increase. Till now Zomato provides an online platform related to the supply of food products.
Zomato CEO’s letter to shareholders
Now Zomato will also have the business of booking show tickets. A Paytm spokesperson has said that with this move we will be able to focus on long term development in our core areas and value creation for all stakeholders.
On the other hand, Zomato MD and CEO Deepinder Goyal said in a letter to the shareholders, “After this deal, we will be able to offer new facilities to our customers like booking tickets related to movies and sports.