Deal Thaw or False Dawn? DoorDash and eToro Signal Hopes for M&A Recovery

In May 2025, the M&A market showed tentative signs of life after a bleak April, with DoorDash’s $5 billion in acquisitions and eToro’s renewed IPO plans offering a glimmer of optimism for investors weary of prolonged deal droughts. While the broader picture remains mixed—U.S. M&A volumes hit a 15-year low—the strategic moves by these two companies highlight a critical question: Are we witnessing the start of a sustained rebound in corporate dealmaking, or merely a fleeting blip in an otherwise stagnant market?

DoorDash’s Global Ambitions

The most consequential deal was DoorDash’s acquisition of UK-based Deliveroo for $3.9 billion, which, when combined with its $1.2 billion purchase of SevenRooms, marked a bold step into global expansion. The Deliveroo deal, which carries a 44% premium over April’s closing share price, is more than a financial transaction. It merges DoorDash’s dominance in suburban and rural markets with Deliveroo’s urban reach, creating a combined entity serving over 50 million monthly users and $90 billion in annual Gross Order Value (GTV).

The strategic logic is clear: By integrating Deliveroo’s nine European and Middle Eastern markets into its 30-country footprint, DoorDash aims to solidify its position as a global leader in “local commerce,” a category that includes food, grocery, and retail. Deliveroo’s 2024 performance—$7.1 billion in GTV, $2.0 billion in revenue, and $140 million in EBITDA—suggests synergies in scaling logistics and technology could amplify profitability.

Yet the deal’s success hinges on execution. DoorDash’s stock price, which , reflects investor skepticism about its ability to sustain growth in a competitive landscape. The company’s $93 billion market cap and $10.7 billion in 2024 revenue provide ample resources, but Deliveroo’s debt-free balance sheet—$85 million in free cash flow in 2024—will be critical to avoiding overextension.

A Fragile M&A Landscape

While DoorDash’s moves stand out, the broader M&A picture remains uneven. Through May 6, total U.S. M&A value was , with deal volume at its lowest since 2009. Even as Sunoco’s $9.1 billion Parkland acquisition and Skechers’ $9.4 billion going-private deal pushed May’s tally to $30 billion, these transactions pale against the $1 trillion in deals completed in the same period in 2021.

Market observers like Bank of America’s Ivan Farman attribute the cautious optimism to easing volatility and regulatory clarity—particularly in the EU, where Deliveroo’s approval process under UK law proceeded smoothly. Yet lingering headwinds remain. IPO activity, a traditional source of M&A targets, has been delayed: 50% of planned summer listings were pushed to fall, with companies accepting valuation discounts to attract capital.

eToro’s refiled IPO plans in May exemplify this tension. The online brokerage initially paused its listing following President Trump’s “Liberation Day” tariff announcement but resumed preparations as markets stabilized. While this signals resilience in capital markets, eToro’s focus on IPOs—not M&A—underscores the uneven nature of recovery.

The Bottom Line: Caution Meets Opportunity

The DoorDash-Deliveroo deal and eToro’s IPO revival suggest two truths. First, corporate leaders are beginning to see value in strategic moves as investor sentiment improves. Second, the rebound remains fragile: the $30 billion in May deals are dwarfed by the $50 billion average for the same period in the past five years.

For investors, the key is to distinguish between opportunistic bargains and overreaching gambles. DoorDash’s move into Europe, for instance, could pay off if it leverages its scale to expand into grocery and retail—a market worth $14 trillion annually. But if regulatory scrutiny or integration costs derail the plan, the $5 billion outlay could become a burden.

The broader market’s 5% YoY decline in M&A value also cautions against overinterpretation. While DoorDash’s dealmaking is a positive sign, the sector’s recovery will require sustained investor confidence and clearer regulatory environments. As Farman notes, “The thaw is real, but it’s still early spring—beware the frost.”

In the end, May 2025’s deals may be less about a full-fledged recovery and more about a cautious first step. For now, the data suggests a slow, uneven thaw—one that investors would be wise to approach with measured enthusiasm.