DoorDash is currently in advanced negotiations to acquire the grocery delivery platform Instacart. The potential transaction is valued at approximately $17 billion, according to reports from The Wall Street Journal and Reuters.
The companies are reportedly in exclusive talks, with a final agreement potentially emerging as early as this week. While negotiations are at an advanced stage, sources indicate that a deal is not yet guaranteed.
Market reaction to the news was mixed on Monday. Instacart shares rose by approximately 8%, while DoorDash shares declined by about 6% amid investor concerns regarding the acquisition cost.
The proposed valuation of $17 billion represents a premium over Instacart's market capitalization of about $13 billion at the close of trading on Friday.
This potential deal follows previous acquisition attempts in 2021, when discussions between the two companies failed at a valuation between $40 billion and $50 billion.
