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In the fast-paced world of food delivery business, the recent revelations surrounding Grubhub and Just Eat Takeaway have sent shockwaves through the industry. The founder of Grubhub, Matt Maloney, has disclosed that he made not one, but two attempts to buy back the company from Just Eat Takeaway for over $1 billion. The details of these failed negotiations shed light on the complex dynamics at play in the high-stakes world of acquisitions and mergers.
Here are the key highlights from this unfolding saga:
- Failed Buyback Attempts:
- Matt Maloney, the co-founder of Grubhub, revealed that he led efforts to repurchase the US unit from Just Eat Takeaway on two separate occasions, with the backing of prominent private equity firms.
- Both of Maloney’s proposals, totaling more than $1 billion, were ultimately rejected by JET management. Despite expressing his interest, he was informed that the company’s CEO, Jitse Groen, was not inclined to sell the company back to him.
- Acquisition by Wonder Group:
- Just Eat Takeaway recently announced a deal to sell Grubhub to US-based Wonder Group for $650 million, a significant decrease from its original acquisition cost of $7.3 billion.
- The sale marks the culmination of Just Eat Takeaway’s two-year plan to divest itself of Grubhub following pressure from shareholders to offload assets. The move comes amidst a turbulent period for the company, which has seen substantial impairments from past acquisitions.
- Future Outlook:
- Following the acquisition by Wonder Group, Grubhub is set to embark on a new chapter under new ownership. The sale is expected to enhance Just Eat Takeaway’s cash generation capabilities and drive growth.
- Despite the positive response from investors, with a 20% increase in share value, Just Eat Takeaway’s market capitalization has plummeted by almost 90% over the past four years, reflecting ongoing challenges in the food delivery sector.
In conclusion, the saga of Grubhub and Just Eat Takeaway underscores the volatile nature of the industry, where strategic decisions can have far-reaching consequences. As stakeholders navigate this ever-evolving landscape, it is essential to stay attuned to the latest developments and trends shaping the future of food delivery businesses.
