Overview

• DoorDash has proposed acquiring Deliveroo for £2.7 billion, valuing shares at 180p each, a 23% premium over its last closing price.
• Deliveroo's board has entered discussions with DoorDash and is inclined to recommend the offer, though it cautions that a firm bid is not guaranteed.
• Deliveroo has suspended its £100 million share buyback program as it undergoes due diligence ahead of DoorDash's May 23 deadline to finalize or withdraw the offer.
• The proposed deal follows Deliveroo's first annual pre-tax profit in 2024 but reflects a steep discount to its 2021 IPO valuation of £7.6 billion.
• If the acquisition proceeds, Deliveroo founder Will Shu could receive over £172 million based on his 5.9% stake in the company.