DoorDash Lines Up A $13.0 Billion Bridge Loan For Instacart And Pauses Buybacks
The 10-Q shows no repurchases last quarter and a JPMorgan loan commitment of up to $13.0 billion behind a roughly $17 billion deal.
DoorDash, the delivery marketplace operator, has a JPMorgan commitment for a 364-day senior unsecured bridge loan of up to $13.0 billion to help pay for Instacart, according to its 10-Q filed Friday. The same filing shows the company bought back no stock in the third quarter.
How the Instacart deal is financed
DoorDash signed the agreement to buy Instacart on October 28, at $65.00 a share, or an equity value of about $17 billion. Shareholders choose between all cash at $65.00, 0.3372 DoorDash shares per Instacart share, or $48.75 plus 0.0843 shares, though stock can make up no more than 25% of the consideration.
DoorDash expects to pay the cash portion from cash on hand and debt. It held $5.1 billion in cash and equivalents, and $6.8 billion in cash and investments, at September 30. The deal carries no financing condition, and the company expects to replace the bridge with permanent financing before closing, according to an 8-K.
Closing is expected at the end of 2027 or in the first half of 2028. DoorDash owes Instacart a $1.25 billion fee if antitrust problems block the deal, while Instacart owes $650 million in certain cases, such as taking a superior offer. The prior quarter's 10-Q carried no mention of the merger.
Buybacks stop, and Nevada adds a test
DoorDash repurchased no Class A shares in the third quarter, after $887 million in the second quarter. About $4.0 billion remains on its $5.0 billion authorization, and the company says it may or may not use the rest.
On September 18, DoorDash converted from a Delaware to a Nevada corporation. Its risk factors now say Nevada law bars repurchases and dividends if the company could not pay its debts as they come due. The articles exempt it from Nevada's separate balance-sheet test.
A record quarter behind the deal
The company runs the DoorDash, Wolt and Deliveroo marketplaces, where Dashers deliver orders from local merchants, and sells merchants services such as white-label delivery. Third-quarter revenue rose 34% to $4.6 billion, and net income attributable to common stockholders was $466 million, up from $244 million a year earlier.
Free cash flow was $787 million, up from $723 million. Net revenue margin slipped to 13.6% from 13.8%, which the filing attributes mainly to the Deliveroo acquisition.
DoorDash intends to file a Form S-4 registration statement covering the shares to be issued.
DoorDash's market value was $77.6 billion at Friday's close, against a deal equity value of about $17 billion.
Sources
- 10-Q Filing — DoorDash (DASH) — SEC EDGAR
- 10-Q Filing — DoorDash (DASH), Q2 FY2026 filed 2026-08-05 (comparison basis) — SEC EDGAR
- Earnings release (8-K Item 2.02, proddashex991-pressrelease.htm) — DoorDash, filed 2026-10-29 — SEC EDGAR
- 8-K Filing — DoorDash, filed 2026-10-29 (Items 1.01, 7.01, 8.01, 9.01) — SEC EDGAR
- DoorDash 3Q Profit Up as Revenue and Orders Grow — MarketWatch
- DoorDash, Inc. (DASH) Q3 Earnings and Revenues Top Estimates — Yahoo Finance
- DoorDash’s (NASDAQ:DASH) Q3 2026: beats on revenue, stock soars — Yahoo Finance
- DoorDash Stock Jumps After $17 Billion Instacart Acquisition, Q3 Earnings Beat | Investor's Business Daily — investors.com
- DoorDash to acquire Instacart for $17 billion — CNBC
