US: Lyft seeking $9B buyout, Uber not willing to pay more than $2B

With regard to ride-hailing company Lyft’s reported attempts to seek a $9 billion buyout, unidentified sources familiar with the proceedings have told Bloomberg that Lyft’s bigger rival Uber is apparently interested in the acquisition.

However, as per the sources, Uber has already asserted that it would not pay more than $2 billion to acquire Lyft — a deal which evidently is below acceptable for Lyft, which is pushing a $9 billion asking price with prospective buyers like General Motors.

According to the sources, Uber has been mulling the takeover of Lyft since 2014. The possibility of Lyft’s acquisition by Uber was discussed by the two companies at an informal setting. But, because Uber is not keen on paying more than $2 billion for the acquisition, it has not yet pushed an official takeover offer.

Meanwhile, even though the acquisition of Lyft would help Uber expand its market share in the ride-hailing service market, Uber CEO Travis Kalanick and other top-rung company executives are doubtful that the acquisition would clear US antitrust laws.

Towards that end, Kalanick has purportedly said in a private meeting that even if Lyft accepts a $2 billion buyout deal, he would not be in favor of the acquisition because the merger of the two companies would face harsh scrutiny from US antitrust regulators.

Full Content: Bloomberg

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