Carl Icahn sold Lyft stake ahead of IPO

Longtime activist investor Carl Icahn sold his stake in Lyft prior to its initial public offering last week, according to sources familiar with the matter.

Icahn’s stake in Lyft amounted to about 2.7 percent of the ride-hailing company. He sold it in a private transaction worth roughly $550 million at the IPO price, according to the Wall Street Journal, which first reported that he had dumped the stake.

When Icahn first bought in four years ago, his take was worth…

$100 million in the then-private company. At the time of the initial investment, Icahn said he believed that increasing urbanization over the next five-to-ten years should continue the company’s revenue growth.

Icahn did not immediately responded to CNBC’s request for comment, but his exit is already looking like a good move.

Though the stock finished its first session at $78.29, above its IPO price of $72, it was last seen trading at $70.31 after falling nearly 12 percent on Monday . It was worth more than $22 billion when it went public last week, despite the fact that it posted a net loss of nearly $1 billion in 2018.

Lyft declined to comment for this article.

Though it wasn’t immediately clear why Icahn sold his stake, staying invested in the newly public company would have…

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