Berkshire Hathaway plans Rs 2,500-cr stake buy in Paytm

Billionaire Warren Buffett is not personally involved in the transaction says an ET report

Billionaire Warren Buffett is not personally involved in the transaction says an ET report

One97 Communications, founded by billionaire Vijay Shekhar Sharma, runs the Paytm brand and is the leading player in India's booming digital payments market.

Todd Combs, investment manager, Berkshire Hathaway, said, "I have been impressed by Paytm and am excited about being a part of its growth story, as it looks to transform payments and financial services in India".

Using historical price data for Berkshire Hathaway class A shares from a retrospective analysis of Buffett's outsize returns and Yahoo Finance, we calculated how much $1,000 of Berkshire stock would be worth today if you had invested that money at the end of each year of Buffett's tenure. "It was good two years ago, it keeps getting better".

India's Economic Times had reported on Monday that Berkshire was in talks for a 3-4 per cent stake in a deal valuing Paytm at more than $10 billion, citing people familiar with the matter.

One97 Communications, the owner of Paytm, counts marquee global investors like Ant Financial and Alibaba as the other key shareholders.

The investment, which values the Alibaba and SoftBank-backed One97 Communications at over Dollars 10 billion, is likely to be announced in the next few weeks, according to two people familiar with the development.

All onboard Australia-bound asylum-seeker boat found
Queensland Police Minister Mark Ryan told the Australian Broadcasting Corporation 15 passengers had been found so far. Ward took them on a tour, pointing out the dangers of the mangroves.

In May, Buffett said at Berkshire's annual shareholders meeting that the financial payments industry is a huge deal around the world and that many companies are working to reinvent the industry. A spokeswoman for Alibaba referred Reuters requests to Paytm.

This investment is expected to help Paytm strengthen its market leadership against Flipkart-owned PhonePe and Google's Tez besides potential competition from Facebook-owned WhatsApp and Reliance Jio.

Paytm, which has been aggressively diversifying its business into areas like investment management and e-commerce through various entities, had registered losses to the tune of Rs 899.6 crore in 2016-17.

Since then, Paytm's platform has seen manifold growth in transactions as well as expansion in number of users.

The company crossed an annual gross transaction run-rate of Dollars 29 billion in May this year. The company has created a host of payment solutions where consumers can transact via the Paytm digital wallet and Paytm Payments Bank.

Recommended News

  • Argentina asks International Monetary Fund to release $50-billion loan early amid economic crisis

    But the peso has continued to drop and inflation has also been rampant, triggering a more desperate response from the government. The run on the peso prompted Argentina to turn to the International Monetary Fund for the $50bn credit line earlier this year.
    Air Canada mobile app breach affects 20,000 people

    Air Canada mobile app breach affects 20,000 people

    In the meantime, the company has locked down all mobile app accounts and is instructing users to reset their passwords. As of Wednesday, it seemed customers were taking the advice to heart.
    Children to be banned from buying energy drinks under government plans

    Children to be banned from buying energy drinks under government plans

    Shops which sell the drinks to people under the legal age - expected to be either 16 or 18 - would face fines of up to $4,400. Tam Fry, of Action On Sugar, said:"It is astounding that the government feels that a consultation is required".
  • Lost Orson Welles Movie Finally Coming Out, Looks Insane

    Lost Orson Welles Movie Finally Coming Out, Looks Insane

    In an interview with Bogdanovich, Welles spoke before his death about his hopes for the then-unfinished film. Now, thanks to effort to complete the film, it'll finally see cinemas and the first trailer has arrived.
    Venezuela Orders Banks to Adopt Cryptocurrency

    Venezuela Orders Banks to Adopt Cryptocurrency

    Venezuelan refugees wait outside the Brazilian Immigration Point in the border city of Pacaraima, Roraima, Brazil, on August 20. Thousands of Venezuelans are now fleeing the country every day in what is rapidly deteriorating into a major migration crisis.
    China may ease family planning restrictions

    China may ease family planning restrictions

    China has relaxed its family planning policy as its population grows old, birth rates dwindle and its manpower diminishes. Authorities hoped that relaxing the one-child limit to two would solve the country's demographic problems, but it hasn't.
  • David Price hit by line drive, leaves game

    David Price hit by line drive, leaves game

    Austin Dean's 102.6-mile-per-hour liner caught Price with enough force that it careened all the way to first baseman Steve Pearce. Immediately after catching the ball and recording the out, Price looked at the wrist and went down the dugout steps.
    Andy Murray hints at U.S

    Andy Murray hints at U.S

    While the women's rules already call for a break if the conditions are too extreme, there is no such provision for the men. But Murray was upset that there wasn't better policing of players while they were off the court.
    Samsung unveils 8K QLED TV

    Samsung unveils 8K QLED TV

    Additionally, the Q900R boasts enhanced contrast and precise backlighting control courtesy of its Direct Full Array Elite feature. The TV will also be able to run at this resolution at a peak brightness of 4,000 nit, said Samsung .
  • Facebook Recommits to Renewable Energy With 2020 Pledge

    Facebook Recommits to Renewable Energy With 2020 Pledge

    All of these wind and solar projects are new and on the same grid as our data centers . Google achieved the same milestone a year ago .
    Tyler Lockett Signs Three-Year, $31.8M Extension With Seahawks

    Tyler Lockett Signs Three-Year, $31.8M Extension With Seahawks

    Wright, defensive end Earl Thomas, and - under the biggest spotlight this offseason - free safety Earl Thomas. The Seahawks drafted Lockett, 25, in the third round of the 2015 NFL Draft.
    Major League Baseball  trade rumors: Blue Jays place Josh Donaldson on waivers

    Major League Baseball trade rumors: Blue Jays place Josh Donaldson on waivers

    Sportsnet's Shi Davidi reports that Donaldson was held out of Wednesday's lineup due to soreness in his calves and legs. Louis-Dispatch cautions that the Cards were not among the teams that sent a scout to check out his first rehab game.

We are pleased to provide this opportunity to share information, experiences and observations about what's in the news.
Some of the comments may be reprinted elsewhere in the site or in the newspaper.
Thank you for taking the time to offer your thoughts.