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Uber/Lyft

Lyft Plans $150 Million Tender Offer as Interest in Stock Rises

An unidentified investor is planning to buy around $150 million of shares in Lyft from employees in a tender offer, at just a 3% discount to the valuation put on Lyft in its recent fundraising. That’s a small discount for stock sold by employees in a tender and reflects investors’ intense interest right now in Lyft, which last year gained market share from Uber.

The tender is the first such deal arranged with Lyft’s cooperation, according to a person familiar with the matter. Such secondary transactions have become a popular way to help longtime employees cash out, without needing to wait for an IPO, as many private tech companies have delayed listing shares publicly.

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Lyft hasn’t been around as long as other companies that completed tender offers for employees, such as Uber and Airbnb, whose employees were able to cash out some gains after seeing the paper value of their companies skyrocket. Typically, employees who sell shares as part of a company-sanctioned secondary transaction such as the current one at Lyft agree to new restrictions on their shares until after an IPO. Lyft is expected to go public by next year, say people close to the company.

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