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The deal is a major relief for Just Eat, whose shares have fallen 70% this year as shareholders demanded it sell or find a partner for Grubhub, which it bought just last year for $5.8 billion in shares.
Shares in Just Eat rose 16% in early trade.
Under the deal announced Wednesday, Amazon (NASDAQ:AMZN) will receive warrants representing 2% of Grubhub’s shares, and an additional 13% conditional on the deal bringing Grubhub enough customers.
“The agreement is expected to expand membership to Grubhub+, while having a neutral impact on Grubhub’s 2022 earnings and cash flow, and be earnings and cash flow accretive for Grubhub from 2023 onwards,” Just Eat Takeaway said in a statement.
The company said that Grubhub’s gross assets were worth 6.5 billion euros ($6.67 billion) at the end of 2021, and it made a pretax loss of 403 million euros in that year.
($1 = 0.9746 euros)
