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Wonder is acquiring Grubhub

(about.grubhub.com)
146 points endtwist | 1 comments | 13 Nov 24 19:12 UTC | HN request time: 0s | source
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chirau ◴[13 Nov 24 19:20 UTC] No.42129001[source]▶
How do these deals work?

I am assuming, and I could be very wrong, that Wonder is smaller by market cap than Grubhub.

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kelnos ◴[13 Nov 24 20:19 UTC] No.42129518[source]▶
Both companies are private, so neither has a "market cap". They just need to agree on a price.

In this case, GrubHub had taken on a bunch of debt; Wonder agreed to assume it, and GrubHub's owners/investors get $150M in cash.

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JumpCrisscross ◴[13 Nov 24 20:35 UTC] No.42129695[source]▶
> Both companies are private, so neither has a "market cap"

Private companies have shares. Given a per-share price, you can get a market cap. For a company with debt, like GrubHub, enterprise value is a better metric.

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zemo ◴[13 Nov 24 20:43 UTC] No.42129782[source]▶
> Given a per-share price

how do you know the per-share price

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JumpCrisscross ◴[13 Nov 24 21:03 UTC] No.42129984[source]▶
> how do you know the per-share price

Same way you do for a public company. From trades and valuations. Private shares exchange hands in private transactions as well as almost every time the company raises money. If a company issues incentive stock options, they're required to calculate a 409A price, which while a bullshit number, is indeed a per-share price.

Corporations, by law, have shares.

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1. Thrymr ◴[13 Nov 24 22:59 UTC] No.42131164[source]▶
But they don't need to publicly disclose it, so "you" probably don't know the price. Someone does, sure.