Zomato Buys Paytm’s TicketNew and Insider for Rs 2,048 Crores
Food delivery company Zomato has completed the acquisition of Paytm subsidiaries WEPL and OTPL for the entertainment ticketing business. The deal, valued at Rs 2,048 crores, was confirmed by both companies on August 21.
Details of the Acquisition
Zomato, led by Deepinder Goyal, entered into definitive agreements to acquire Paytm’s entertainment arms. Paytm, based in Noida, confirmed the development in its stock exchange filing. The acquisition includes the TicketNew and Insider platforms, operated by OTPL and WEPL, respectively.
Employee Transition
About 280 employees from Paytm’s entertainment ticketing business will join Zomato. Paytm aims to focus on its payments and financial services distribution segment.
Transition Period
During a transition period of up to 12 months, movie and event tickets will continue to be available on the Paytm app, as well as on the TicketNew and Insider platforms, ensuring a smooth experience for users and merchant partners.
Background and Stock Performance
Paytm built its movie ticketing business from scratch and acquired TicketNew and Insider for Rs 268 crores between 2017 and 2018. After the announcement, Zomato’s stock opened in green at Rs 256.20, delivering a 60% reward to its shareholders over the past six months.
Doubts Revealed
Zomato -: Zomato is a company in India that helps people order food online from restaurants.
Paytm -: Paytm is a company in India that provides online payment services and financial services like banking.
TicketNew -: TicketNew is a platform where people can buy tickets for movies and other events online.
Insider -: Insider is another platform where people can buy tickets for events, concerts, and shows online.
Rs 2,048 crores -: Rs 2,048 crores is a large amount of money in Indian currency, where 1 crore equals 10 million rupees.
WEPL and OTPL -: WEPL and OTPL are the names of the companies that run TicketNew and Insider, which were owned by Paytm.
280 employees -: 280 employees are the people who work for TicketNew and Insider and will now work for Zomato.
transition -: Transition means the changeover period when the employees and services move from Paytm to Zomato.
Zomato’s stock -: Zomato’s stock is a share in the company that people can buy and sell in the stock market. Its value went up after the announcement.
