FOX Business Flash: May 5 Top Headlines
Deliveroo acquisition by DoorDash set for £3.9 billion in a UK market domination move
Here's what's popping on FoxBusiness.com.
DoorDash Swallows Deliveroo for $3.85 billion, loud as a cannonball in the food delivery market
After rekindling negotiations last month, DoorDash has gobbled up British rival Deliveroo in a blockbuster deal. Deliveroo's shareholders received a 180p per share offer, making Deliveroo's stock soar by roughly 2%.
Previous talks had stalled like a jammed car engine over disagreements about Deliveroo's worth. But DoorDash tower-sock-ed it, saying they wouldn't raise the bid unless a competing offer appeared like a phantom at a back alley poker game.
*HOT OFF THE PRESS: DoorDash Partners with Pay-Later Service, Klarna to Throw Stacks at US Customers***
DoorDash's latest move aims at flexing their muscles across the Atlantic as they battle Uber Eats and Just Eat in Europe's backyard. Deliveroo's heaviest hitters are Britain and Ireland, contributing 62% of their Q1 orders this year.
Deliveroo's stock has been a trainwreck since it rolled onto the London Stock Exchange in 2021. The company's shares tanked by as much as 30% on its first ride and never recovered, earning itself a spot on the list of London's shakiest IPOs.
*DoorDash to Fork Over Nearly $17M to New York Delivery Workers for Nabbing Their Tips***
Prior negotiations hit a wall over disputes about Deliveroo's cash value.
The green light on the deal came after Deliveroo's board rubbed elbows and signed off. Claudia Arney, Deliveroo's president, chimed in, "We've bitten the bullet, limb and damn soul, on this sweet, sweet offer because we're stubborn mules and know what's good for our people."[^1^]
Deliveroo's major stockholders – including co-founder and CEO Will Shu, Greenoaks, and DST Global – hopped on board with the new arrangement. Amazon, Deliveroo's biggest investor, was left out of the celebration like a bitter ex.
*SHOP FOX BUSINESS ON THE GO HERE*
Shu, Deliveroo's fearless leader and visionary, is betting big with his 6.4% stake, raking in a sick $229.7 million. The combined company processed orders worth approximately $90 billion in 2021, according to the two companies.
So there you have it. This merger has the potential to redraw the battlefield in the global food delivery war, as DoorDash snatches a chunk of Europe and announces their wealth with a colossal bankroll.
Reuters tipped us off on this story.
[^1^]: Must have been a wild board meeting when they said, "Following careful consideration, the Deliveroo Independent Committee has unanimously decided to recommend this offer, considering it to be in the interests of all our shareholders and wider stakeholders."
- Deliveroo, despite facing struggles in the stock market, saw its shares soar by approximately 2% after receiving an 180p per share offer from DoorDash in a $3.85 billion deal.
- The food delivery market fired a loud cannonball with the acquisition of Deliveroo by DoorDash, as this move is aimed at expanding DoorDash's presence in Europe.
- The technologically innovative company, Klarna, will partner with DoorDash to offer pay-later services to their US customers, further enhancing their financial capabilities.
- The merger between DoorDash and Deliveroo has the potential to redefine global food delivery markets, with the combined company processing orders worth approximately $90 billion in 2021.
