Ally May Go Public Next Year, Could Be Worth $30 Billion

In an attempt to pay back taxpayers, Ally Financial may seek to go public next year as it hopes to pay back part or all of the $17 billion U.S. taxpayers funded it with writes Bloomberg. After GM purchased subprime car lender AmeriCredit Corp. for $3.5 billion, the value of Ally may be worth as much as $30 billion, according to its Chief Executive Officer Michael Carpenter. “I love the AmeriCredit deal because it values our automotive segment alone at $25 billion,” he said. “I don’t have any doubt about our ability to repay the U.S. Treasury. So I think it’s great.” Carpenter goes on to say, "An IPO “is very clearly within our sights” in 2011. The obvious route to repay Treasury is an IPO, unless somebody comes along with a check for $30 billion, based on the AmeriCredit valuation.” There are still questions about the viability of Ally even as it looks to go public next year. Christopher Whalen, managing director of Institutional Risk Analytics shares some of his concerns. “I’m not sanguine about an IPO for Ally. They still have too many questions to answer. The one question Ally cannot answer right now is, ‘Why does it make sense for GM to continue doing business with them now that they have created a new captive lender? I want to hear about how they’re going to fill out rest of the business model.” Ally Financial, which used to be known as GMAC Inc. reported net income of $565 million during the second quarter. In the same period last year, the company had a loss of $3.9 billion. All of Ally’s operating segments were profitable the company said in a statement. Strong Buy Stocks That Have Tripled the Market. See them for free.