Paytm-Zomato Deal: One97 Communications Limited (OCL), the company that operates the Paytm brand, has announced the sale of its movie ticket business to Zomato for Rs 2,048 crore. Apart from movies, the entertainment ticket business also includes tickets for sports events and music concerts. The boards of directors of both the companies have approved this deal to be done entirely in cash. Under this agreement, OCL's entertainment ticket business will be transferred to its subsidiary companies Orbgen Technologies Private Limited (OTPL) and Westland Entertainment Private Limited. Paytm's stock has strengthened amid this news. At around 10 am, Paytm's stock is up 2.14 percent at Rs 586.35 on BSE , while Zomato's stock is flat at Rs 259.90.

Tickets will be booked on the new app

100 percent stake in subsidiary companies will be sold to Zomato. After the deal is completed, Zomato will operate a new app called 'District' for its entertainment ticket 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 in the transmission period of the next 12 months. Informing about the final agreement with Zomato, OCL said that the value of this deal would be Rs 2,048 crore.

What will be the benefit to Zomato?

Under the deal, Zomato will buy OTPL, engaged in movie ticketing business, for Rs 1,264.6 crore while it will buy Westland Entertainment Pvt Ltd, engaged in event organising business, for Rs 783.8 crore.

OCL said that this deal will also include about 280 existing employees of the entertainment ticket business. After this deal, the scope of Zomato's business will increase. Till now Zomato has provided an online platform related to the supply of food products.

Zomato CEO's letter to shareholders

Now Zomato will also have the business of booking show tickets. A Paytm spokesperson has said that this move will enable us to focus on long-term development in our core areas and value creation for all stakeholders.

On the other hand, Zomato MD and CEO Deepinder Goyal said in a letter to shareholders, "After this deal, we will be able to offer new facilities to our customers like booking movie and sports tickets."