 "Paytm to sell its entertainment, ticketing biz for Rs 2,048 crore to Zomato")
This report has been updated
One 97 Communications Limited, which owns the Paytm brand, on Wednesday said it will sell its entertainment ticketing business to food delivery platform Zomato for Rs 2,048 crore.
One 97 Communications Limited, which owns the Paytm brand, on Wednesday said it will sell its entertainment ticketing business to food delivery platform Zomato for Rs 2,048 crore.
Around 280 existing employees who are part of the entertainment and ticketing subsidiaries will subsequently be transferred to the Gurugram-based food aggregator.
“This deal, valued at Rs 2,048 crore on a cash-free, debt-free basis, stands as a testament to the value Paytm has created through its entertainment ticketing business, bringing choice and convenience to millions of Indians with its services and scale,” OCL said in a statement.
As part of the agreement, OCL’s entertainment and ticketing business will be transferred to its subsidiaries -- Orbgen Technologies (OTPL) and Wasteland Entertainment (WEPL).
The company will sell its entire stake in OTPL and WEPL that operates TicketNew and Insider to Zomato.
Paytm acquired TicketNew and Insider for Rs 268 crore between 2017 and 2018.
More From This Section
For users, movie and event tickets will continue to be available on the Paytm app for a transition period of 12 months.
The transaction is expected to be closed within the ongoing quarter “subject to the satisfactory completion of all closing conditions”.
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 this transaction.
“We built the entertainment ticketing business by addressing the market needs of the time. Today, as it transitions to Zomato ownership, we thank every team member who contributed to building this business. It has been a privilege to grow this business with an incredible team,” a Paytm spokesperson said.
Paytm proposes a reduced remuneration for its board’s non-executive independent directors
One97 Communications (OCL), the company operating the Paytm brand, has proposed a reduced remuneration package for its non-executive independent directors by capping their annual compensation at Rs 48 lakh for the financial year 2025 (FY25).
The revised compensation structure will have a fixed component of Rs 20 lakh, with the rest comprising variable components linked to attendance at meetings and chairpersonship or membership positions held in the various committees of the board.
In FY24, non-executive independent directors on the company’s board had a compensation package between Rs 1.65 crore and Rs 2.07 crore.
The newly proposed remuneration framework will be subject to shareholder approval.
It would be in effect from April 1, 2024.
Paytm is seeking shareholder approval for the appointment of former Indian Revenue Service officer Rajeev Krishnamuralilal Agarwal to its board.
Similarly, it is seeking shareholder approval for the reappointment of Ravi Chandra Adusumalli, founder and co-managing partner of Elevation Capital, to its board of directors, who is set to retire by rotation.