Zomato and Paytm clarify speculative acquisition reports and say deal assessment is yet to be taken – Industry News

Food delivery giant Zomato has confirmed that the company is in talks with Paytm to acquire the film and events business. However, the company has not yet confirmed its assessment of the transaction. Earlier, the deal was speculated to be worth Rs 1,500 crore.

“We have noticed that there are articles circulating in the mainstream media about the topic ‘Zomato is in talks to acquire Paytmmovies, ticket sales. This voluntary disclosure is intended to clarify our position on this matter, given that any transaction deemed potentially significant may create market uncertainty. We confirm that we are in talks with Paytm regarding the above-mentioned transaction, however, no binding decision has been taken at this stage which would require Board approval and subsequent disclosure in accordance with applicable law,” Zomato said in an official statement.

The company further stated that the ongoing discussions are undertaken with a view to further strengthening its business and are in line with the company’s stated position of focusing exclusively on four key business areas.

Meanwhile, Paytm has also clarified saying, “In response to recent media reports regarding ‘Zomato in talks to acquire Paytm movies, ticketing’, we would like to voluntarily clarify our position.” The Company routinely explores various strategic opportunities designed to enhance shareholder value. Potential relocation of Paytm’s entertainment business, which is part of our marketing Services are one option being considered. As we noted in our earnings call, our focus will be on payment and financial services, as well as digital goods trading to help our merchants scale their businesses.

The company further stated that any current discussions are preliminary in nature and do not involve any binding agreements requiring approval or disclosure pursuant to Art. 30 of the SEBI Act (Listing Obligations and Disclosure Requirements) Regulations 2015 or other applicable regulations.

After the acquisition of Grofers, now Blinkit, 2021 is assumed to be Zomato’s next big gig. As per the report, Zomato has acquired Grofers in an all-stock deal for Rs 4,447 crore.