DoorDash agrees to buy Instacart in a roughly $17 billion deal
The $65-a-share agreement would combine two delivery platforms, but shareholder and regulatory approvals still lie ahead.
DoorDash agreed to acquire Instacart for a stated value of $65 per share, or about $17 billion in equity value, the companies announced Thursday. The proposed combination would expand DoorDash's grocery-delivery business, but it is an agreement to buy the company, not a completed merger.
At least 75% of the aggregate consideration will be cash. Instacart shareholders can elect cash, DoorDash shares or a mixture, subject to proration and a cap that limits DoorDash stock to 25% of the total consideration. Reuters also reported the price and cash minimum.
What shareholders are being offered
The announced choices are $65 in cash, 0.3372 DoorDash shares, or a mix of $48.75 in cash and 0.0843 DoorDash shares for each Instacart share. The proration rules mean an election does not guarantee that each holder receives exactly the mix requested.
The companies describe the offer as a 26% premium to Instacart's October 22 closing price, the last trading day before media reports about a possible deal. That is the stated comparison date, not Wednesday's closing price. The roughly $17 billion figure is equity value, not a claim about the combined companies' future revenue.
The long path to closing
Instacart's board unanimously approved the agreement. The companies expect the transaction to close in late 2027 or the first half of 2028, subject to Instacart shareholder approval, antitrust review, other regulatory approvals and customary conditions. Shareholders holding about 19% of Instacart's outstanding shares have agreed to support it.
DoorDash expects to fund the cash portion with cash on hand and debt financing. The companies say the transaction is not subject to a financing condition. That does not remove the separate approval requirements.
For readers, the question is what regulators and customers make of the proposed combination, rather than whether an announcement alone delivers the promised benefits. See our morning briefing for the wider earnings and economic-data backdrop.
