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Uber troubles send Lyft shares soaring on secondary markets

By dailymail / Published on Saturday, 17 Jun 2017 06:16 AM / No Comments


Lyft shares are changing hands in some private deals in a range between $25 a share and $30 a share, according to another source who has arranged sales of Lyft shares this year and asked to remain anonymous to protect relationships with clients.

While that’s less than the $32 a share value in Lyft’s latest funding round, the discount has narrowed since the start of this year, this person said, echoing comments from Sawyer.

Because of a lack of transparency in private markets, prices can vary widely, with more being paid for preferred stock than for common shares.

That trend could help keep Lyft employees happy and motivated as the company looks to close its market share gap with Uber, the ride leader that’s now back on its heels.

Thanks to a fresh injection of cash, Lyft has been adding new features and expanding into new markets with the money.

Lyft earlier this year raised $600 million at a valuation of $7.5 billion from investors that included KKR, the storied private equity giant, pushing its valuation up by more than a third from $5.5 billion a year earlier.

As a result, insiders wanting to sell are finding buyers willing to pay more.