DoorDash tells employees not to connect with Instacart peers on LinkedIn. It’s an uncommon M&A ask
DoorDash told employees not to connect with Instacart peers on LinkedIn until their deal is closed.
DoorDash has instructed its workforce to refrain from connecting with their counterparts at rival Instacart on LinkedIn, a directive that has raised eyebrows among industry experts. The ban follows a reported $17 billion acquisition deal between the two food delivery giants. According to a question-and-answer document filed with the SEC, DoorDash employees are prohibited from requesting new connections with Instacart employees on LinkedIn, even if they already have a prior relationship.
The company emphasized that "Not at this time" is the appropriate response to the question "Can I connect with Instacart employees on LinkedIn?" While the policy may limit LinkedIn connections for DoorDash employees, it also reflects a broader trend among companies undergoing mergers and acquisitions, aiming to prevent the sharing of sensitive information or coordination between the two entities.
Such measures are often implemented to maintain the competitive edge of the merging firms until the deal is finalized. Experts suggest that the prohibition on LinkedIn connections could be an attempt to prevent employees from "gun-jumping," or jumping ship to the other company, which could potentially derail the deal. However, the practice of restricting social media interactions during a merger is relatively uncommon among M&A experts.
The decision by DoorDash and Instacart to impose such a restriction on their employees has sparked discussions about the appropriateness and potential antitrust implications of the measure.
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