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Uber to Acquire Postmates in an All-Stock Deal for $2.65B
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According to Bloomberg News, Uber Technologies, Inc. (UBER - Free Report) has agreed on an all-stock deal to acquire Postmates Inc. The deal, expected to be formally announced today, is valued at $2.65 billion.
Postmates, the fourth-largest food delivery company in the United States, will be part of Uber’s food delivery division, Uber Eats. The combined entity will be under the control of Uber Eats’ head Pierre-Dimitri Gore-Coty. However, Postmates will continue to be managed separately by its chief executive officer Bastian Lehmann and his team.
Reports of Uber planning to acquire its smaller rival Postmates first surfaced last week. Given the intense competition in the food delivery market, Uber, carrying a Zacks Rank #3 (Hold), was looking for a consolidation. To this end, in May, the company attempted to acquire Grubhub . However, talks fell apart between the two parties in June reportedly due to antitrust concerns. Grubhub, also carrying a Zacks Rank #3, is now set to be acquired by Just Eat Takeaway.com, a European food-delivery company.
The takeover would help reduce competition in the U.S. food delivery space, simultaneously strengthening Uber’s foothold in Los Angeles and the American Southwest, where Postmates has a strong base.
Although Uber’s board of directors has approved the Postmates deal, the plans could still change.
While shares of Tencent Holding have surged more than 48% in a year’s time, CooTek Cayman has an impressive earnings history, having outperformed the Zacks Consensus Estimate in three of the last four quarters, the average beat being 28.5%.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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Uber to Acquire Postmates in an All-Stock Deal for $2.65B
According to Bloomberg News, Uber Technologies, Inc. (UBER - Free Report) has agreed on an all-stock deal to acquire Postmates Inc. The deal, expected to be formally announced today, is valued at $2.65 billion.
Postmates, the fourth-largest food delivery company in the United States, will be part of Uber’s food delivery division, Uber Eats. The combined entity will be under the control of Uber Eats’ head Pierre-Dimitri Gore-Coty. However, Postmates will continue to be managed separately by its chief executive officer Bastian Lehmann and his team.
Reports of Uber planning to acquire its smaller rival Postmates first surfaced last week. Given the intense competition in the food delivery market, Uber, carrying a Zacks Rank #3 (Hold), was looking for a consolidation. To this end, in May, the company attempted to acquire Grubhub . However, talks fell apart between the two parties in June reportedly due to antitrust concerns. Grubhub, also carrying a Zacks Rank #3, is now set to be acquired by Just Eat Takeaway.com, a European food-delivery company.
The takeover would help reduce competition in the U.S. food delivery space, simultaneously strengthening Uber’s foothold in Los Angeles and the American Southwest, where Postmates has a strong base.
Although Uber’s board of directors has approved the Postmates deal, the plans could still change.
Key Picks
Some better-ranked stocks in the Internet - Services space are Tencent Holding Ltd (TCEHY - Free Report) and CooTek Cayman Inc (CTK - Free Report) , both sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
While shares of Tencent Holding have surged more than 48% in a year’s time, CooTek Cayman has an impressive earnings history, having outperformed the Zacks Consensus Estimate in three of the last four quarters, the average beat being 28.5%.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>