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Lyft reportedly declined GM's $6 billion acquisition offer

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【Summary】Recent reports have suggested that Lyft was involved in acquisition discussions with a variety of companies, including Apple, Google, Uber, and Didi Chuxing.

Patrick    Aug 30, 2016 11:43 AM PT
Lyft reportedly declined GM's $6 billion acquisition offer

General Motors expressed interest in an acquisition that would have valued Lyft at around $6 billion, including the company's $1.4 billion cash pile, according to a report by The Information. That's a long way from the $8–10 billion that Lyft was seeking, a source close to the company told The Verge.

Recent reports have suggested that Lyft was involved in acquisition discussions with a variety of companies, including Apple, Google, Uber, and Didi Chuxing. GM was suspected to be the most likely suitor, as it invested $500 million in Lyft earlier this year and the two companies have been working together to develop an autonomous car fleet. It isn't clear if any of the discussions resulted in a written offer.

Lyft remains firmly in second place behind Uber in the US ride-hailing industry. But it is still the only non-Uber company to have any significant traction in the market at all, theoretically giving it leverage in negotiations with companies that wish to compete with Uber. The Information claims that Lyft is losing less than $50 million per month (and that it has plans to reduce its losses even further), potentially giving it a few years worth of runway, assuming the numbers are accurate.

"We are not seeking a buyer," said Alexandra LaManna, a Lyft spokesperson in a statement to The Verge. "Our business is stronger than it's ever been and we are focused on continuing to grow."

resource from: The verge

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