Paytm has decided to sell its entertainment ticketing business. Paytm’s parent company One97 Communications Limited (OCL) has announced the sale of its movie, sports and event (live performance) ticketing business to Zomato Limited for Rs 2,048 crore. The boards of directors of both the companies have approved this deal to be done entirely in cash.
Under this agreement, the entertainment ticketing business of One97 Communications will be transferred to its wholly-owned – Orbgen Technologies Private Limited (OTPL) and Westland Entertainment Private Limited (WEPL). After this, 100 percent stake in these subsidiaries will be sold to Zomato.
After the completion of the deal, Zomato will operate a new app called ‘District’ for its entertainment ticketing business. OCL said in a statement that despite the sale of this business to Zomato, these tickets will be booked only on Paytm’s app during the transition period of the next 12 months.
Under this deal, Zomato will fully acquire OTPL, which is engaged in the movie ticketing business, for Rs 1,264.6 crore, while it will buy Westland Entertainment Private Limited, which is engaged in event organizing, for Rs 783.8 crore. OCL said that about 280 existing employees of the entertainment ticketing business will also be included in this deal.
