{"id":39212,"date":"2025-04-28T11:35:49","date_gmt":"2025-04-28T11:35:49","guid":{"rendered":"https:\/\/quickassetsmarket.com\/index.php\/2025\/04\/28\/deliveroo-shares-soar-on-takeover-bid-but-analysts-say-doordash-offer-falls-short\/"},"modified":"2025-04-28T11:35:49","modified_gmt":"2025-04-28T11:35:49","slug":"deliveroo-shares-soar-on-takeover-bid-but-analysts-say-doordash-offer-falls-short","status":"publish","type":"post","link":"https:\/\/quickassetsmarket.com\/index.php\/2025\/04\/28\/deliveroo-shares-soar-on-takeover-bid-but-analysts-say-doordash-offer-falls-short\/","title":{"rendered":"Deliveroo shares soar on takeover bid, but analysts say DoorDash offer falls short"},"content":{"rendered":"
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Shares in Deliveroo surged on Monday morning after the London-listed food delivery group announced it had received a $3.6 billion (\u00a32.7 billion) takeover approach from US rival DoorDash. <\/p>\n

The stock jumped 17% at the start of trading, making it the top performer on the FTSE 250 index, which was up 0.7% overall.<\/p>\n

Deliveroo said it had received an indicative proposal from DoorDash offering 180p per share in cash. <\/p>\n

The company\u2019s board indicated that it would be \u201cminded to recommend\u201d such an offer to its shareholders should a formal bid be made. <\/p>\n

Deliveroo shares rose to 170p early on Monday, up sharply from their closing price of 146.6p on Friday.<\/p>\n

In a separate announcement, Deliveroo said it would suspend its \u00a3100 million share buyback programme with immediate effect, citing the approach from DoorDash. <\/p>\n

The company had been returning cash to shareholders following efforts to stabilise its business after a rocky public debut.<\/p>\n

DoorDash a “natural buyer” but offer leaves room for rival bids: analysts<\/h2>\n

Analysts have described DoorDash as a logical acquirer for Deliveroo, noting that the two companies have limited geographic overlap. <\/p>\n

“DoorDash is a natural buyer for Deliveroo given that there are no real geographic overlaps between the two companies, Morgan Stanley analyst Luke Holbrook wrote.<\/p>\n

However, some market commentators suggested that the 180p per share offer might not be enough to seal the deal without competition. <\/p>\n

Brokerage Panmure Liberum said the offer was \u201cby no means a knockout valuation\u201d, leaving room for a potential bidding war. <\/p>\n

Prior to the latest developments, the firm had a target price of 200p on Deliveroo shares.<\/p>\n

Deliveroo, co-founded by chief executive Will Shu in 2013, operates across nine countries and works with around 135,000 riders. <\/p>\n

Should the takeover proceed at the proposed price, Shu stands to collect more than \u00a3172 million based on his 5.9% holding in the business.<\/p>\n

Deliveroo’s journey from a rocky IPO to takeover target<\/h2>\n

Deliveroo\u2019s journey on the London Stock Exchange has been tumultuous. <\/p>\n

The company floated in 2021 at an initial price of 390p per share but saw its stock tumble by 25% on its first day of trading, earning it the nickname \u201cFlopperoo\u201d.<\/p>\n

Deliveroo has struggled for years to break even as it expanded aggressively from a startup to a major player in the global food delivery industry.<\/p>\n

In 2024, however, the company not only posted its first profit<\/a> but also generated positive cash flow for the first time.<\/p>\n

Revenue rose to \u00a32.1 billion, driven by a 5% increase in the total value of orders to \u00a37.4 billion.<\/p>\n

DoorDash had previously held talks with Deliveroo over a possible takeover, but negotiations reportedly collapsed over valuation disagreements. <\/p>\n

Its renewed interest comes amid pressure on food delivery companies from inflation and changing consumer habits.<\/p>\n

The move fits into DoorDash\u2019s broader international expansion strategy. <\/p>\n

The US-based group operates marketplaces in over 30 countries and has made several high-profile acquisitions, including buying Finnish firm Wolt in 2022 for more than $8 billion and acquiring premium service Caviar in 2019.<\/p>\n

A combination with Deliveroo would further consolidate the competitive food delivery sector, which continues to grapple with thin margins, rising costs, and growing demands for profitability.<\/p>\n

The post Deliveroo shares soar on takeover bid, but analysts say DoorDash offer falls short<\/a> appeared first on Invezz<\/a><\/p>\n

<\/p>\n","protected":false},"excerpt":{"rendered":"

Shares in Deliveroo surged on Monday morning after the London-listed food delivery group announced it had received a $3.6 billion (\u00a32.7 billion) takeover approach from US rival DoorDash. The stock jumped 17% at the start of trading, making it the top performer on the FTSE 250 index, which was up 0.7% overall. Deliveroo said it <\/p>\n","protected":false},"author":1,"featured_media":39213,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[5],"tags":[],"class_list":{"0":"post-39212","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-investing"},"_links":{"self":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/39212","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/comments?post=39212"}],"version-history":[{"count":0,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/posts\/39212\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media\/39213"}],"wp:attachment":[{"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/media?parent=39212"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/categories?post=39212"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/quickassetsmarket.com\/index.php\/wp-json\/wp\/v2\/tags?post=39212"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}