Uber Master Plan
What if: - 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?
Pure fantasy. Hostile take over may not pass the DoJ. Also there is no guarantee that there won't be a new entrant. Entry into ride hailing just needs some one with no qualms of setting shit loads of money on fire.
Oh yes - forgot about the various stock classes that ensures the founders retain control similar to what google has
Can't do that. There are laws that prohibit such take overs unless the specific company is filing for bankruptcy
What if a third leg grew out of your ass?
Uber is IPOing next month
On what grounds could the SEC intervene?
Sec would not intervene but anti trust authority would block the deal due to monopoly.
Taxi industry is still kicking, so doubt there’s a real concern for a monopoly.
You know all of Lyft is not on stock market right?
Fantasy. Regulators won’t sign off on such a takeover. Also Lyft founders have majority voting stake.