Just Eat Takeaway sells Grubhub for $650 million, just 3 years after buying the app for $7.3 billion

he Grubhub app is seen on an iPhone, Feb. 20, 2018. AP Photo/Charles Rex Arbogast, File

European food delivery giant Just Eat Takeaway.com is selling Grubhub for $650 million, a fraction of the billions it spent to buy the U.S. platform just three years ago.

Wonder Group, a New York-based food ordering company that touts โ€œfast fineโ€ dining, is set to be Grubhubโ€™s new owner. Under terms of the deal, announced Wednesday, Wonder will acquire Grubhub from Just Eat Takeaway.com for $150 million in cash and $500 million in senior notes.

Thatโ€™s far less than than the price tag on Grubhubโ€™s last sale. Back in 2020, during the early days of the COVID-19 pandemic and a surge in demand for takeout meals, Just Eatย agreed to buy Grubhub for $7.3 billionย โ€” reportedly beating Uber to a merger โ€” in a transaction that was later finalized in 2021.

Amsterdam-based Just Eat Takeaway.com acknowledged Wednesday that it had been โ€œactively exploringโ€ the partial or full sale of Grubhub for some time, citing prior announcements from the company. Just Eat Takeaway.com added that selling Grubhub to Wonder would increase growth, cash generation and support investment in countries where it โ€œhas the greatest competitive advantage.โ€ Beyond the U.S. the company currently operates in 18 other countries.

The transaction is expected to close during the first quarter of 2025, subject to regulatory approval and other customary conditions. When completed, Just Eat Takeaway.com says it will retain no material liabilities related to Grubhub.

โ€œThis deal delivers the right home for Grubhub and its employees,โ€ Just Eat Takeaway.com CEO Jitse Groen said in a statement. Shares of the company were up over 15% by midday Wednesday.

The CEOs of Wonder and Grubhub, Marc Lore and Howard Migdal, also sounded positive notes Wednesday โ€” with both noting that the deal would aid Wonderโ€™s mission to โ€œmake great food more accessibleโ€ and enhance customer experiences.

Wonder,…

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