Delivery service Deliveroo sale finalized as negotiations escalate among City investors: Founder poised to reap £172 million in £2.9 billion acquisition by U.S. counterparts.
Rewritten Article:
Deliveroo's Founder Set to Bank £172m as US Rival DoorDash Scoops Up the Food Delivery Firm for £2.9b
In a whirlwind day of acquisitions, Deliveroo's boss, Will Shu, will pocket a cool £172 million after doorbell-toting delivery service giant, DoorDash, snagged the edible empire for a whopping £2.9 billion.
The eyebrow-raising offer of 180p a share from DoorDash has Wall Street abuzz, signaling Deliveroo potentially becoming the next London Stock Exchange-leaver, dashing hopes for the city's ailing financial district.
The takeover frenzy didn't stop there, as it seems there's a power play brewing in the energy sector, with Shell reportedly eyeing a bid that could cement one of the biggest oil sector takeovers to date. Adding more corn to the popcorn, Primark's parent company, Associated British Foods, is in talks to offload their Kingsmill bakery unit to the private equity overlords of everybody's favorite British bread, Hovis.
The marriage of DoorDash and Deliveroo sets the stage for a tantalizing £95 billion food delivery power couple with operations spanning across 40 countries.
Ch-ching, Deliveroo's Founder is Quids in!
First whetting London's appetite back in 2013, Deliveroo's mastermind, Shu, has quickly ascended the rankings of the UK's business elite at 45 years old. The company spent the majority of its initial decade operating behind closed doors before going public in 2021.
The public share sale, though hyped to high heaven, flopped harder than a soggy piece of overcooked spaghetti. Analysts were ruthless in their critiques, with some deriding the whole episode as a "floperoo."
Since its embarrassing public debut, Deliveroo has stumbled along, save for a brief surge during the Covid lockdown craze when shares received a much-needed boost from the sudden demand for doorstep deliveries. Shu maintains a 6.4% stake in the company, meaning he's poised to walk away with a tidy fortune.
Kathleen Brooks, a research director at XTB, wasn't mincing words when she said, "This deal is good news for short-term holders of Deliveroo shares, but it is still a blow for those who have been hanging on since the IPO. Deliveroo's sale is the end of the road for one of the most hyped IPOs in recent British memory - it promised more than it could deliver."
Deliveroo counts 176,000 partner restaurants and retailers in its roster, serving an impressive 7 million customers monthly. The company maintains a presence in the UK, Belgium, France, Italy, Ireland, Kuwait, Qatar, Singapore, and the United Arab Emirates.
Nasdaq-listed DoorDash, a Californian dream that was also birthed in 2013, boasts over 42 million monthly users and partners with an even more impressive 500,000 businesses.
In a press statement, Shu gushed, "DoorDash and Deliveroo are kindred spirits with a shared vision and like-minded values. We are excited to team up and elevate each other's capabilities to better serve consumers, merchants, riders, and our beloved local communities. The combined forces will have the heft to invest in product, technology, and overall consumer experience."
DoorDash's CEO, Tony Xu, echoed these sentiments, professing his excitement for the collaboration's potential.
Much-loved British bread giants, Hovis, and Kingsmill, may soon merge, as their owners huddle in quiet talks. The move could create a titanic force in the UK bread market, poised to outpace Warburtons. Supermarket loaves have fallen out of fashion in recent years as health-conscious consumers opt for grab-and-go meals or embrace novel breakfast options. However, an ABF spokesperson cautioned that "no deal is guaranteed," and a formal announcement would be made if and when appropriate.
- After the acquisition, Deliveroo's founder, Will Shu, will receive £172 million, making him significantly wealthier.
- The takeover of Deliveroo by DoorDash has raised eyebrows on Wall Street, as it might signal another London Stock Exchange departure.
- The combined forces of DoorDash and Deliveroo, valued at £95 billion, will potentially become a powerful force in the global food delivery market.
- Kathleen Brooks, a research director at XTB, stated that the sale of Deliveroo is a blow for those who have held shares since its IPO, although short-term holders stand to benefit.
- In the bread market, a possible merger between Hovis and Kingsmill could create a strong competitor, potentially outpacing Warburtons, due to the shift in consumer preferences towards healthier options.
