Lyft’s $9 billion price tag was too high for GM
(AP Photo/Jeff Chiu, File)
Lyft's price tag may have been too high for GM to pay.
That's according to a new report by Amir Efrati at The Information, which claims that GM told Lyft's board of directors it would be willing to pay $6 billion for the ride-hailing startup. Another person told The Information GM's offer was closer to $4.5 billion plus Lyft's cash on hand — about $1.4 billion.
GM has invested $500 million in a strategic partnership with Lyft.
The $6 billion price is significantly lower than the $9 billion Lyft was reportedly asking for. Numerous sources claimed that Lyft had talked to six different companies, including GM, and had failed to find a buyer.
"We are not seeking a buyer," a spokesperson for Lyft told Business Insider. "Our business is stronger than it has ever been and we are focused on continuing to grow."
Lyft President John Zimmer also told Business Insider last week that the company is not for sale and that previous reports "crossed a line."
"Getting approached and then having it characterized as us wanting to sell the business and failing to do so is a large mischaracterization," he said. "If the company is approached, it doesn't mean the company is looking."
It appears that GM approached Lyft, then the company went and talked to other potential buyers as part of what Zimmer calls the "normal course of business" to try and get the highest possible price for a potential sale.
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