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DoorDash to acquire Wolt Enterprises

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Yahoo Finance's Julie Hyman and Brian Sozzi discuss the announcement DoorDash made to acquire Wolt Enterprises and DoorDash's earnings, which were better than estimates.

Video Transcript

JULIE HYMAN: But we've got to talk about some companies that are already public this morning. One of them is DoorDash. The company reported its earnings. I'm less interested in the earnings, though. Let's talk about the deal that the company is doing. It bought a Finnish-- it's buying a Finnish food delivery startup called Wolt Enterprises for about $8 billion. And this is DoorDash's biggest deal yet.

Again, yes, it's Finnish. And that's because DoorDash is trying to get more of a foothold in the European market here. The shares are surging by 17%. And that does seem to have more to do with this deal than the earnings, which, by and large, were better than estimated. But it seems like this is a big deal for the company. Emily, you want to-- or actually Soz, you want to jump in on this one?

BRIAN SOZZI: Yeah, what earnings report here, Julie? And I think the market is locked and loaded on this deal that they are making, largest one in the company's history. Gives them instant access to Europe. And I'm just reading over a good Wells Fargo note breaking down what Wolt-- you know, however you would say it, I'm clearly not Finnish.

This business has $2.5 billion of run rate gross ordering value in the third quarter, up 130% year over year, 2 and 1/2 million monthly active users, 4,000 employees, 23 countries served, strong retention of the drivers on the platform here. So it looks to be-- this was an aggressive price for the acquisition, no doubt about it, but it gives DoorDash what appears to be a very strong asset in the growing international market, which is one they clearly needed to get into.