Just Eat is danish not Dutch. Close. It's somewhere in Europe.
Just Eat Takeaway to acquire Grubhub for $7.3B
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Re: Just Eat Takeaway to acquire Grubhub for $7.3B
#12[deleted]
Re: Just Eat Takeaway to acquire Grubhub for $7.3B
#13Genuine question: why? I completely understand acquisitions that create value by providing economies of scale, monopoly power or network benefits, or diversify or complement a company's activities. But for a European market leader to buy an American market leader in what is ultimately an extremely local business... I see no real added benefit here. Few further economies of scale when you're already at continent-size…
One broad thing I can think of is that there aren't strict GDPR requirements in the United States. Might be the case the value of user data alone might make the sale worth it, but I am speculating here.
Re: Just Eat Takeaway to acquire Grubhub for $7.3B
#14Just Eat is danish not Dutch. Close. It's somewhere in Europe.
Gell-Mann Amnesia affect.
Re: Just Eat Takeaway to acquire Grubhub for $7.3B
#15Just eat was originally Danish not Dutch
Re: Just Eat Takeaway to acquire Grubhub for $7.3B
#16The value is in the transaction data they now capture with their own ordering and delivery service.
Transaction data is the gold standard in building personalized marketing/ads.
Re: Just Eat Takeaway to acquire Grubhub for $7.3B
#17Just Eat is danish not Dutch. Close. It's somewhere in Europe.
It seems they were basing that off of Takeaway.com, one half of the Just Eat Takeaway merger. And now the company is based out of the UK, so who knows why they went with Dutch.
Re: Just Eat Takeaway to acquire Grubhub for $7.3B
#18Just Eat is danish not Dutch. Close. It's somewhere in Europe.
Actually, Just Eat was originally Danish and moved to UK in 2005, so it is British.
In any case, the company they are talking about is "Just Eat Takeaway", which is the result of the purchase by Dutch company Takeaway.com of British company Just Eat in February 2020, so it is in fact Dutch.
Re: Just Eat Takeaway to acquire Grubhub for $7.3B
#19Genuine question: why? I completely understand acquisitions that create value by providing economies of scale, monopoly power or network benefits, or diversify or complement a company's activities. But for a European market leader to buy an American market leader in what is ultimately an extremely local business... I see no real added benefit here. Few further economies of scale when you're already at continent-size…
Just Eat Takeaway seems to be a recent creation through the takeover of just eat by takeaway. With another acquisition so soon, I think you'd find some answers if you look at how management there is compensated. If you have a willing/uninvolved board (or a board that still loves the idea of rollup companies that grow through M&A), and aquisitions help you hit a few targets (total revenues, total market cap) that get you a bonus, well, you can see where that goes.
Re: Just Eat Takeaway to acquire Grubhub for $7.3B
#20It looks like Just Eat currently has a market cap of 5.233B pounds, 6.645B USD.
How does an all stock acquisition of 7.3B USD work in this case?
Is this done via issuing more than an extra 100% of stock on the expectation the new asset will counteract the dilution to keep the stock price similar?