Uber jumps 8% after it agrees to buy alcohol-delivery service Drizly for $1.1 billion
Uberrose 8% on Tuesday after the company said it agreed to buy alcohol-service Drizlyfor $1 billion.
- The "Amazon for liquor" will become a wholly owned subsidiary under Uber once the deal goes through.
- Drizly's marketplace will eventually be integrated with the Uber Eats app, the companies said.
Upon completion of the deal, Drizly will become a wholly owned subsidiary of ride-hailing app Uber. In due course, its marketplace will be combined with the Uber Eats app, while it continues to keep its own standalone app, the companies announced.
The cash-and-stock deal is expected to close in the first half of 2021.
Drizly, sometimes referred to as the "Amazon for liquor," was founded in 2012 when the founders realized
"Wherever you want to go and whatever you need to get, our goal at Uber is to make people's lives a little bit easier," Uber CEO Dara Khosrowshahi said in a statement. "That's why we've been branching into new categories like groceries, prescriptions and, now, alcohol."
Uber said it expects over 90% of the consideration to be paid to shareholders in Drizly to consist of shares of Uber common stock, while the balance will be paid in cash.
Uber's stock was trading around $57.13 at the market open on Tuesday.
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