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I think you're over thinking this. Suggesting that Lyft is worth a low price so that people think that means Lyft is worth more doesn't seem plausible. Why not
by mkolodny 10y ago
I think you're over thinking this. Suggesting that Lyft is worth a low price so that people think that means Lyft is worth more doesn't seem plausible. Why not just suggest that Lyft is worth $8 billion?
On the other hand, I could see Uber trying to devalue Lyft so that they could buy them for cheaper. Or so that Lyft has a hard time raising money at a higher valuation.
- leereeves 10y agoWould regulators allow Uber to buy Lyft?
- sdenton4 10y agoSince when does uber care about regulations?
- billmalarky 10y agoFrom the article regarding Uber purchasing Lyft: "Uber Chief Executive Officer Travis Kalanick has said privately that he would not support such a deal because he believes it would face intense regulatory scrutiny"
- user5994461 10y agoI don't see why not. There are other [minor] competitors in the world.
- erdevs 10y agoI'm saying that if Uber was trying to devalue Lyft, it's far too obvious a ploy. It won't work. They may as well have said Lyft is worthless-- it'd still be for obvious reasons, but at least that wouldn't have established such a high floor. Any buyer reading this will assume that this means Uber thinks Lyft is actually worth upwards of $6-8B. As such, it is silly of Uber to have signaled this, unless they have a third-order effect they are hoping for (eg getting someone to overpay for Lyft). But I agree with you that that is unlikely to work... therefore, Uber is being silly here.