One97 Communications Clarifies Zomato Acquisition Talk Rumours

EE News Desk Jun 17, 2024

In a communication to the exchanges, the company stated that it routinely explores various strategic opportunities to enhance shareholder value

Paytm-owner One97 Communications clarified its stance on rumours of acquisition talks with food delivery giant Zomato regarding Paytm's movies and ticketing business.

In a communication to the exchanges, the company stated that it routinely explores various strategic opportunities to enhance shareholder value.

It explained, "The potential transfer of Paytm’s Entertainment business, a component of our Marketing Services, is one opportunity under consideration. As noted in our earnings call, our focus will be on payment and financial services along with digital goods commerce, which are designed to help our merchants scale their businesses. However, any discussions currently underway are preliminary and do not involve any binding agreements that require approval or disclosure under Regulation 30 of the SEBI (Listing Obligations and Disclosure Requirements) Regulations, 2015, or other applicable laws."

"As such, any information pertaining to these discussions should be considered speculative at this time," it continued.

On 16 June, Zomato clarified that it is in discussions to acquire Paytm's movie ticketing and events business.

This statement followed news reports indicating that negotiations for a Rs 1,500-crore deal between One97 Communications and Zomato were in advanced stages.

In a statement, Zomato mentioned, "We acknowledge that we are in discussions with Paytm for the transaction, however, no binding decision has been taken at this stage that would warrant a Board approval and subsequent disclosure in accordance with applicable law."

This strategic move aligns with Zomato's plan to enhance its 'going out' offerings. The company pointed out, “The discussion is being undertaken with an intent to further strengthen our going-out business and is in line with our stated position of focusing only on our four key businesses.”