DoorDash agreed to acquire Instacart in a $17 billion deal
DoorDash agreed to acquire Instacart in a roughly $17 billion deal, its largest acquisition to date. The transaction is valued at $65 per Instacart share, with at least 75% of the consideration in cash; DoorDash says the combination could give Instacart customers access to more than 50,000 additional stores. The Los Angeles Times reported antitrust concerns about the proposed combination.
More context
The planned $17 billion purchase of Instacart would be DoorDash’s largest acquisition and expand its grocery-delivery reach. Under a definitive agreement with Instacart parent Maplebear, each share is valued at $65. At least 75% of the transaction consideration will be cash, with DoorDash stock capped at 25%. DoorDash says the deal would give Instacart customers access to more than 50,000 additional stores, beyond the nearly 100,000 already on its platform. The companies also plan to let DashPass and Instacart+ members use one membership fee instead of two; DoorDash estimates that would save members $100 million a year. DoorDash expects to retain Instacart’s brand, app and enterprise technology products. The companies will operate independently until closing, subject to stockholder and regulatory approvals. The Los Angeles Times reported the combination has raised antitrust concerns.
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Reporting
- The American Bazaar — DoorDash agrees to acquire Instacart in $17 billion deal
- The Washington Post — DoorDash to acquire Instacart for $17 billion - The Washington Post
- The New York Times — DoorDash to Buy Instacart for $17 Billion, Uniting 2 Delivery Giants - The New York Times
- The Wall Street Journal — DoorDash to Buy Instacart for About $17 Billion - WSJ
- Los Angeles Times — DoorDash to buy Instacart for $17 billion - Los Angeles Times
- Associated Press — DoorDash to buy Instacart in $17 billion consolidation for grocery delivery | AP News
- hardwareretailing.com — DoorDash to Acquire Instacart in $17 Billion Transaction | Hardware Retailing
Verifier’s note
The Washington Post, The New York Times, The Wall Street Journal, the Los Angeles Times, and AP News report that DoorDash agreed to acquire Instacart for about $17 billion; American Bazaar Online and Hardware Retailing also describe the announced deal. The reports support the proposed event and its central claim.