M&A

M&A

Paytm sells event ticketing biz to Zomato for Rs.2,048-Cr

BSE Disclosure  

One 97 Communications Limited (OCL), which owns the brand Paytm, is to sell its entertainment ticketing business that includes movies, sports and events (live performances) to food delivery company Zomato Ltd for INR 2,048 crore on a cash-free, debt-free basis.OCL will transfer its entertainment ticketing business to Zomato by 1) transfer of OCL’s entertainment ticketing business to it’s 100% subsidiaries, Orbgen Technologies Pvt Ltd (OTPL) and Wasteland Entertainment Pvt Ltd (WEPL), and 2) selling 100% stake in its subsidiaries OTPL and WEPL, which operate the TicketNew and Insider platforms, respectively to Zomato. The transfer will also include about 280 existing employees from the entertainment ticketing business.During a transition period of about 12 months, the movie and event tickets will continue to be available on the Paytm app.Paytm built movie ticketing from the ground up, and acquired TicketNew and Insider for total consideration of INR 268 crore from 2017 to 2018. Additional investments were made to scale up the business. The entertainment ticketing business fetched revenues of INR 297 crores and adjusted EBITDA of INR 29 crore in FY24.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 the transaction.