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In June, Just Eat Takeaway entered into an agreement to acquire Grubhub (GRUB) for $7.3 billion. The move marks Just Eat Takeaways foray into online

In June, Just Eat Takeaway entered into an agreement to acquire Grubhub (GRUB) for $7.3 billion. The move marks Just Eat Takeaways foray into online food delivery in the U.S. with the two companies together creating the worlds largest online food delivery company outside of China. Grubhub is a leading online and mobile food-ordering and delivery marketplace in the U.S., with nearly 300,000 restaurants across 4,000 U.S. cities. The deal sidelined Uber, which had been in talks with Grubhub for acquisition.

Source: The Biggest Acquisitions of 2020 (So Far) | Nasdaq

The research project is worth 200 points in total. Each objective is worth 50 points.

Objectives:

  1. Discuss probable motivations for Just Eat Takeaway to acquire GrubHub.
  2. Just Eat Takeaway may treat the acquisition of GrubHub as a separate entity, keeping GrubHubs name, trademark, identity.
    1. Outline the operational aspects of this action. List the pros and cons of the operational aspects of this action.
    2. Discuss the accounting treatment of GrubHub as a separate entity within Just East Takeaway. List the pros and cons of the accounting aspects of this action.
  3. Just Eat Takeaway may dissolve GrubHub recording GrubHubs earnings as a separate location.
    1. Outline the operational aspects of this action. List the pros and cons of the operational aspects of this action.
    2. Discuss the accounting treatment of GrubHub as a location/market for Just East Takeaway. List the pros and cons of the accounting aspects of this action.
  4. Lets vary the terms of the acquisition: Just Eat Takeaway has acquired 45% of GrubHub. Should Just Eat Takeaway utilize the equity or fair value method to account for the acquisition. List the pros and cons of the accounting aspects of this action.

    Database Research may include the following sources:

    1.Accounting periodical research

    2.Tax research using RIA professional software

    3.Financial accounting and auditing research using the FASB codification via Academic AccountingAccessProgram

    4.AICPAs Resource Online Accounting and Auditing Literature

    5.SEC website EDGAR (Electronic Data Gathering, Analysis, and Retrieval system) WRITE AT LEAST 4 PAGES

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