- Uber schedules their IPO a few weeks before the Lyft lockup period ends
- Uber IPO’s and attracts lots of attention
- Lyft stock continues to tank
- Uber then uses new surplus of cash to buy tons of Lyft stock on the cheap
- Uber completes hostile takeover of Lyft
- Uber shuts down Lyft and then starts raising prices as they become the dominant market leader to attain profitability
Pure fantasy or potential reality?
- Snapchat AlexHeathFantasy. Regulators won’t sign off on such a takeover. Also Lyft founders have majority voting stake.
- Indeed / EngteeniSec would not intervene but anti trust authority would block the deal due to monopoly.
- Uber lol BlindWe don’t even have to buy Lyft equity directly, because we can buy the underlying asset which is market share.
Pure speculation, I think SEC would let Uber buy Lyft if the stock does get really low. Better than allowing Wall Street to bankrupt it with shorts and it going out of business.
If Lyft can no longer subsidize, and Uber can, why shouldn’t Uber just price Lyft out of business?