←back to thread

Wonder is acquiring Grubhub

(about.grubhub.com)
146 points endtwist | 2 comments | | HN request time: 0s | source
Show context
bsimpson ◴[] No.42129006[source]
Those weird ghost kitchen things have more than half a billion dollars to spend on acquisitions?!

I wonder how this came to be - did they already have that big of a war chest, or did they hear they could buy a name brand and go back to their investors to finance it?

replies(10): >>42129013 #>>42129028 #>>42129215 #>>42129359 #>>42129375 #>>42129794 #>>42130261 #>>42130494 #>>42132018 #>>42134445 #
1. refulgentis ◴[] No.42129375[source]
IMHO it's sort of the inverse*: its not that weird ghost kitchen things have $500 mil for acquisitions, its that Marc Lore has enough salesmanship to get private capital to lend $100M to get a turnkey delivery business for his food entrepreneurship, and the banker loans can pretty it up to sound like $600M, and the decision makers at GrubHub get a mildly-embarrassing outcome instead of an extreme outcome. (shutdown)

* I know a decent amount about finance, but don't practice it daily enough to find it second nature. I'd appreciate a similarly colloquial perspective from someone who reads me as naive.

replies(1): >>42129690 #
2. mgiampapa ◴[] No.42129690[source]
I think that future loosening of the credit markets due to political factors is also playing a roll. By the time the runway is spent they may expect to be in a very different market so buying scale now is the move.