DoorDash to buy Instacart for $65 a share in $17 billion deal

Maplebear Inc. (CART), which operates the grocery delivery platform Instacart, agreed on Oct. 28 to be acquired by DoorDash, Inc. (DASH) in a deal the companies valued at about $17 billion, a regulatory filing showed on Oct. 29.

Shares were little changed in premarket trading as of 8:44 a.m. ET, from a previous regular-session close of $58.42.

Under the merger agreement, each Instacart share can be exchanged for $65.00 in cash, 0.3372 shares of DoorDash Class A common stock, or a mix of $48.75 in cash and 0.0843 shares. The company said the cash portion is at least 75% of the aggregate consideration, and stock elections are subject to proration.

The value of $65.00 represents a 26% premium to Instacart's closing price on Oct. 22, 2026, the last trading day before media reports about a possible transaction, according to the press release attached to the filing.

The merger is subject to approval by Instacart stockholders, expiration or termination of the Hart-Scott-Rodino waiting period, and regulatory approvals in Canada and Israel. Stockholders holding about 19% of Instacart's shares have agreed to vote in favor.

The companies expect the transaction to close in the end of 2027 or the first half of 2028.

DoorDash expects to fund the cash portion with cash on hand and proceeds from debt financing. It has a financing commitment letter from JPMorgan Chase Bank, N.A. for a 364-day senior unsecured bridge loan facility. The transaction is not subject to a financing condition.

If the merger is terminated under specified circumstances, Instacart will pay a termination fee of $650,000,000 in cash. If Instacart stockholders do not adopt the merger agreement, Instacart will reimburse DoorDash's expenses up to $25,000,000. Parent will pay Instacart $1,250,000,000 in cash under specified regulatory-related circumstances.

Tony Xu, co-founder and CEO of DoorDash, said: "Grocery is one of the hardest things to get right online." He added that "together, we could give stores of every size more of those tools and unlock the potential of grocery delivery."

Chris Rogers, CEO of Instacart, said joining forces with DoorDash "allows us to do even more."

Instacart suspended its financial guidance and withdrew its long-term guidance, which the company said is customary while a transaction is pending. In its Aug. 6 release it had given guidance of GTV between $10,300 million and $10,550 million and adjusted EBITDA between $320 million and $340 million.

DoorDash will report its third-quarter 2026 results on Oct. 29 and discuss the transaction on its earnings call at 8:30 a.m. ET, according to the release.

Goldman Sachs & Co. LLC is financial advisor to Instacart. Centerview Partners LLC is lead financial advisor to DoorDash.