Zomato Eyes Paytm's Movie Arm in Billion-Dollar Bid

Zomato Eyes Paytm's Movie Arm in Billion-Dollar Bid

By Staff Writer, 20 June 2024

Zomato is currently in negotiations to acquire Paytm's movie and ticketing division, a move that could significantly bolster its presence in the entertainment sector. The discussions, confirmed by both companies, suggest Zomato might shell out between Rs 1,600-1,750 crore ($190-210 million) for this strategic acquisition.

This potential deal comes amidst reports of layoffs at Paytm and a challenging financial quarter, marked by the company's first revenue decline due to regulatory constraints imposed by the Reserve Bank of India. Despite these setbacks, Paytm remains optimistic, indicating preliminary talks about divesting its entertainment arm.

If successful, this acquisition would rank among Zomato’s largest, following its notable acquisitions of Uber Eats in 2020 and Grofers (now Blinkit) in 2021, worth Rs 4,447 crore in an all-stock transaction. Paytm anticipates a recovery starting Q2, citing stabilized or growing metrics for both customers and merchants since April and May.

Source: Startup Rise Asia

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