Shares of online food delivery platform Grubhub (NYSE: GRUB) popped today, rising by 12% as of 2:45 p.m. EST, after The Wall Street Journal reported that the company is exploring a sale. The news comes as competition from Uber and privately held DoorDash intensifies.
Grubhub has hired financial advisers to explore strategic options that could potentially include selling itself, according to the Journal report. Management is also reportedly concerned about how to deal with an activist investor, should one accumulate a meaningful stake and start agitating for changes in an effort to boost shareholder value. It's still early in the process, and nothing may materialize from the talks.
Image source: GrubHub.
Source Fool.com