GrubHub surges 37% on report of potential takeover by Uber

• GrubHub stock spiked as much as 37% on Tuesday after Bloomberg reported Uber made a takeover offer for the food delivery company.
• Both firms are in negotiations and could close a deal before the end of the month, sources familiar with the matter told Bloomberg.
• The news prompted a trading halt for GrubHub shares. The company now trades positive for 2020, with Tuesday's surge wiping out the last of its virus-induced losses.
• Uber soared as much as 5.6% on the news.
• Watch GrubHub trade live here.

GrubHub shares skyrocketed as much as 37% on Tuesday after Bloomberg reported Uber offered to acquire the food delivery company.

Both firms are in negotiations and could reach an agreement before the end of May, sources told Bloomberg. Talks could still fall through, the sources added.

The news drove outsized trading volume for GrubHub shares and prompted a temporary trading halt. The midday spike pushed GrubHub's stock price into a year-to-date gain, wiping out losses made during coronavirus-fueled sell-offs.

Uber shares jumped as much as 5.6% following the report.

Read more: Bill Miller's record-setting fund beat the market for 15 straight years. He explains why he's still bullish on airlines today, even after Warren Buffett abandoned the industry twice.

Uber's Eats business competes with Chicago-based GrubHub, and has leaned heavily on the segment to make up for lost revenue amid the coronavirus pandemic. Uber is valued at roughly $55 billion, while the latter company has a market cap of roughly $5.3 billion.

GrubHub traded at $56.94 per share as of 11:25 a.m. ET Tuesday, up 19% year-to-date.

Uber traded at $33.19 per share, up 10% year-to-date.

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