Uber (UBER 0.96%) is in discussions to acquire food delivery company Grubhub (GRUB) in what could be a transformative deal.
Citing people familiar with the matter, The Wall Street Journal reports that the two sides have been holding talks for a while now and could reach an all-stock transaction in the coming days. Uber's board plans to examine the deal during the next few days, reports the WSJ.
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If a deal does transpire, it would bring together two of the leading meal delivery services in the U.S. Uber's core ride-hailing service has plummeted due to social distancing rules, although UberEats has enjoyed growth. Grubhub could help it further diversify into meal delivery.
Under rumored the terms of the deal, Grubhub shareholders would get 2.15 shares of Uber, amounting to about $68 per Grubhub share as of the close of trading Monday. Recently, shares of Grubhub are surging on the deal talks.
