Lyft raising new round after turning down GM acquisition offer
August 15, 2016
Lyft recently rejected takeover advances from General Motors (NYSE: GM), according to The Information. After talking with other potential acquirers, Lyft reportedly turned down GM and instead plans to raise a new round of funding.
Although an acquisition isn't in the offing—at least for now—this news further outlines a strong relationship developing between the two companies. In January, GM contributed $500 million to Lyft as part of a $1 billion round of funding, acquiring 9% of the company in the process. Then, in March, the companies announced a partnership with plans to launch a fleet of self-driving cars within a year.
Having such an established, deep-pocketed company among its serious supporters is huge for Lyft, especially since its main competitor, Uber, is the most highly valued private company in the world.