- Carl Icahn sold his roughly 2.7% stake in Lyft ahead of its initial public offering, The Wall Street Journal says.
- Lyft’s share price has plunged more than 20% since debuting on the Nasdaq.
- Icahn’s stake was valued at roughly $550 million at the IPO price of $72.
- Watch Lyft trade live.
While the motivation of Icahn’s sale was not announced, the activist investor may have been put off by Lyft’s 2018 operating losses of nearly $1 billion and a dual class share structure which gives the founders Logan Green and John Zimmer de facto control of the company despite holding a minority of shares.
Icahn invested roughly $150 million in Lyft in 2015 when the ride-hailing firm was valued at $2.5 billion. While the exact price at which the share sale occurred is unknown, Icahn has likely realized a significant gain given Lyft’s $24 billion valuation when it went public.
Lyft’s pre-IPO investors, including the founders, are subject to a lock-up which prohibits the sale of shares for 180 days from the March 28 IPO date.
Lyft’s early trading has been choppy as short sellers have mounted a massive bet against the company. Analysts have expressed concerns about the company’s valuation despite the significant growth potential of the ride-sharing industry.
Shares were down 20% from the $87.24 where they debuted on Friday.
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