One 97 Communications Limited, which owns the Paytm brand, on Wednesday said it will sell its entertainment ticketing business to food delivery platform Zomato for Rs 2,048 crore.
Around 280 existing employees who are part of the entertainment and ticketing subsidiaries will subsequently be transferred to the Gurugram-based food aggregator.
“This deal, valued at Rs 2,048 crore on a cash-free, debt-free basis, stands as a testament to the value Paytm has created through its entertainment ticketing business, bringing choice and convenience to millions of Indians with its services and scale,” OCL said in a statement.
As part of the agreement, OCL’s entertainment and ticketing business will be transferred to its subsidiaries — Orbgen Technologies (OTPL) and Wasteland Entertainment (WEPL).
The company will sell its entire stake in OTPL and WEPL that operates TicketNew and Insider to Zomato.
Paytm acquired TicketNew and Insider for Rs 268 crore between 2017 and 2018.
For users, movie and event tickets will continue to be available on the Paytm app for a transition period of 12 months.
The transaction is expected to be closed within the ongoing quarter “subject to the satisfactory completion of all closing conditions”.
Deloitte Touche Tohmatsu India LLP provided transaction advisory and valuation, while Morgan Stanley assisted Paytm with fairness opinion on the transaction.
Luthra & Luthra acted as legal counsel to Paytm on this transaction.
“We built the entertainment ticketing business by addressing the market needs of the time. Today, as it transitions to Zomato ownership, we thank every team member who contributed to building this business. It has been a privilege to grow this business with an incredible team,” a Paytm spokesperson said.
First Published: Aug 21 2024 | 9:32 PM IST