Zomato has verified that it is in talks with Paytm about its movies and events division

Zomato has verified talks with Paytm for the purchase of Paytm's movies and events division.

The conversation aims to enhance our outbound business and aligns with our strategy of concentrating on our four main businesses outlined in the report.

In a different submission, Paytm also acknowledged current talks without explicitly mentioning Zomato. Paytm explained that they are currently considering the possibility of transferring their entertainment business, which is included in their marketing services, as a potential opportunity.

Paytm intends to focus on payment and financial services along with digital goods commerce. It mentioned that current talks are only preliminary and not legally binding, similar to Zomato's announcement.

Media reports indicate that this strategic decision is in line with Zomato's strategy to improve its 'going out' services. According to sources, Paytm is in talks with Zomato to sell off its movie and events ticketing division as part of a strategic restructuring in response to decreasing sales, as reported earlier by Bloomberg. The possible agreement may estimate the worth of Paytm's movies and events division at around ₹1,500 crore.

Reports indicated that if completed, this acquisition would be the second-largest for Zomato, following its purchase of Blinkit (formerly Grofers) in 2021 for ₹4,447 crore in an all-stock deal.

Zomato is ramping up its emphasis on fast commerce by intending to invest an extra ₹300 crore into its subsidiary Blinkit, as competition gets more fierce. This action increases Zomato's overall investment in Blinkit to more than ₹2,300 crore.

Zomato closed Friday trading with a 0.7 % increase, reaching ₹186.19. It has increased by approximately 50 % so far in 2024.