Paytm shares surge 4% on talks to sell movie ticketing business to Zomato
Paytm shares surged 4% to Rs 442 in Tuesday's trade on BSE following reports that the company is in talks with Zomato to sell its movie ticketing business. Zomato shares also rose 1.5% in early trade.
In an exchange filing, Zomato acknowledged, «We are in discussions with Paytm for the aforementioned transaction, but no binding decision has been taken at this stage that would warrant a board approval and subsequent disclosure in accordance with applicable law.»
Zomato added, «This discussion is intended to further strengthen our 'Going-out' business and aligns with our focus on our four key businesses currently.»
ET reported on June 16 that Zomato is looking to acquire Paytm’s movie booking and events unit, in a deal that may value Paytm’s vertical at around Rs 1,600-1,750 crore. Post the addition of receivables from cinema exhibitors, the valuation could go up to Rs 2,000 crore, according to sources.
Paytm also confirmed discussions regarding the potential transfer of its entertainment business in an exchange filing, stating that all the discussions are preliminary and non-binding at this stage.
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If the transaction goes through, it will be among the largest buyouts for Zomato after it acquired Uber Eats in 2020 and took over quick commerce platform Blinkit (formerly Grofers) in 2021 in an all-stock deal valued at Rs 4,447 crore.
Commenting on the development, JM Financial BFSI analyst Sameer Bhise said, «Media reports speculate
