Lyft Rebuffs Acquisition Interest From GM

[HardOCP News]

Have you ever noticed that rumors like this always pop up right before a company is preparing for a new round funding? If the rumors are true, you have to wonder what made Lyft turn down an acquisition offer from GM when the company has supposedly been looking for someone to buy them.

Ride hailing company Lyft rebuffed acquisition interest from General Motors Co and will raise a new funding round instead, technology website The Information reported on Friday, citing two people familiar with the situation. GM and Lyft representatives did not immediately comment on the report. GM invested $500 million in Lyft in January and has since said it plans to expand its alliance with the ride services company.

 

[EODetroit]

Assuming Lyft is a public company, instead of the shares being bought at a premium, share value will be diluted. Shareholders must be mildly annoyed.

 

[SLee]

Lyft is a money-losing private company. Lyft probably rejected the acquisition since it would have crystallized losses for its VC investors, who are hoping that Lyft can still pull off a miracle.

 

[Uvaman2]

Lyft is a money-losing private company. Lyft probably rejected the acquisition since it would have crystallized losses for its VC investors, who are hoping that Lyft can still pull off a miracle.

I Think this makes sense.
Yeah, not enough pump, in the pump and dump scheme.. makes sense.

 

[LFaWolf]

I believe Uber is making money except in China, where the protectionism and fierce competition forced it out recently. Where do you see Lyft is losting money?

 

[SLee]

I believe Uber is making money except in China, where the protectionism and fierce competition forced it out recently. Where do you see Lyft is losting money?

Lyft is bleeding hundreds of millions of dollars

Uber was suffering huge losses in 2015:

Uber is spending like crazy to take over the world

If Uber was making money, they wouldn't need to continually raise money; far more than any startup in history.

 

[Azphira]

They want to be like Yahoo and sell themselves for 89% less.

 

[LFaWolf]

This is what I read while back. Profitable in US, not China for sure.
Uber says it’s 'profitable' in the US — here’s how much it makes per ride