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Watch Jim Cramer Explain Why Uber's $6 Billion Offer Is Too Low for GrubHub

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The possible deal between Uber and Grubhub is still ongoing.

Based on reports, it sounds like Uber will pay around $6 billion for Grubhub.

Uber would give Grubhub shareholders 1.9 Uber shares for each of their Grubhub shares under those terms, knowledgeable sources told The Wall Street Journal.

That would value Grubhub stock at $62.72, based on Uber’s closing price of $33.01 Wednesday. Grubhub shares closed at $58.18 Wednesday.

Grubhub was seeking 2.15 Uber shares per Grubhub share in the negotiations, the Journal reported Tuesday. But Uber apparently was unwilling to go that high. A deal hasn’t been finalized, so the final price is anyone’s guess, if a transaction comes to fruition at all.

But Barclays analysts said in a note Wednesday that Grubhub could fetch as much as $75 per share from Uber.

"In addition to meaningful upside, we note that this deal allows GRUB shareholders to participate in what we think could be a strong ride-hail industry recovery in 2020-2021," Barclays analysts, led by Deepak Mathivanan, wrote in note.

Jim Cramer said GrubHub stock has moved dramatically and its leadership would be foolish to not negotiate for more. 

You can follow Jim Cramer and Katherine Ross on Twitter at @JimCramer and @byKatherineRoss. Read more from Katherine Ross here.

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