Report: Icahn Didn't Wait For Lyft's IPO To Sell Stake

Activist investor Carl Icahn didn't wait around for Lyft Inc LYFT's stock's initial public offering to sell his stake, sources close to the matter told The Wall Street Journal.

What Happened

Icahn owned around 2.7 percent of Lyft and sold his stake to fellow billionaire investor George Soros ahead of last week's IPO, according to WSJ. The private market deal was facilitated by a former managing director of Icahn's firm Jonathan Christodoro who was also a former member of Lyft's board of directors.

Icahn initially invested around $150 million for his stake in Lyft several years ago when the ride-hailing company was worth just $2.5 billion. The company was valued at $24 billion when it started trading on a public market.

Why It's Important

Icahn could have simply decided to cash in on a large profit as he rarely invests in private companies.Icahn held his stake in Lyft for four years, which is typically long by his standards.

On the other hand, Icahn may have been displeased with Lyft's stock structure which allocates the two co-founders a near-majority voting power, sources told WSJ.

The Street and investors will be debating what impact Icahn's reported move will have on the stock over the near term and long term. In the meantime, short sellers have already borrowed $455 million worth of Lyft's stock, data from IHS Markit shows.

Lyft's stock closed Wednesday's session at $70 per share.

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