Rumors Run Wild for Uber to Acquire Grubhub
Posted on 05/12/2020
San Francisco-based Uber Technologies is making an offer to acquire food delivery company GrubHub. Grubhub had a market cap of roughly US$ 5.8 billion in the afternoon of May 11, 2020. As cash remains tight, this could be an all-stock deal. Uber ended the first quarter 2020 with around US$ 9.5 billion in cash or cash equivalents and the company terminated a large lot of employees due to the coronavirus pandemic.
In a statement to various media outlets, Grubhub did not confirm Uber’s offer, but said that it would continue looking at “value-enhancing opportunities” and that consolidation “makes sense” in the food delivery industry. In its own statement, Uber did not confirm it made an offer to acquire Grubhub.
However, Uber has rejected the 2.1 share ratio in Grubhub, as talks grow tense over price, according to CNBC.
On May 4 2020, Uber announced the discontinuation of Uber Eats operations in certain markets by June 4, 2020. The operations in these markets are not material, according to a recent filing.
On another note, the first tranche of US$ 891 million unsecured convertible notes in connection with the Careem acquisition that were outstanding as of March 31, 2020 were settled in cash on April 1, 2020.