GrubHub

GrubHub Got Away, But There Are Other Opportunities to Consider

Uber (UBER) might have missed out on the highly-publicized GRUB acquisition, but there are other opportunities for the ride sharing pioneer.

So believes BTIG analyst Jake Fuller, who highlights three different strategies that “could collectively be worth ~$600 million to annual EBITDA (coincidentally in line with the synergy projected with a GRUB combination).”

Fuller’s first suggestion relates to deconsolidation – basically, the removal of a subsidiary off the balance sheet. Fuller thinks Uber is willing to consider the deconsolidation of its losing self-driving car business, ATG (advanced technologies group). With an 80% stake in a business expected to report a “$400 million-plus annual loss,” wiping it off the balance sheet would require Uber to “solicit additional investment.”

“ATG would need ~$2.6 billion of new capital (UBER bearing all of the dilution) to drop ownership below 50% and deconsolidate. Given the size of the investment required, it’s unlikely

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