Rakuten to book $990 million profit from Lyft IPO

by SpeedLux
Lyft car sharing

Japanese company Rakuten on Monday stated it will post a 110 billion yen ($990 million) profit in its first-quarter revenues from an increase in the value of its stake in Lyft, after the U.S. ride-hailing company went public on Friday.

Rakuten spent $700 million in Lyft since 2015 and owned a 13% stake prior to the initial public offering. The ride-hailer’s stock closed its first day of trading at $78.29, giving the firm a market capitalization of over $22 billion.

Rakuten’s own stock price dropped 3% on Monday after the announcement. It has surged over 40% since the starting of the year, partly because of expectations for a huge windfall from Lyft’s IPO, along with rising valuations of other portfolio companies such as U.S. image sharing site Pinterest.

The investment gain is going to help to cushion expected pressure on Rakuten’s profits from operations, because the online mall operator spends to start a mobile network business. The company has not given revenue guidance for this year.

You may also like

Leave a Comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

SpeedLux

SpeedLux is a high-authority automotive blog providing the latest automotive news and reviews. SpeedLux covers everything related to cars, bikes, and motorcycles, from news and reviews, to troubleshooting guides, tips and tricks, and more. SpeedLux was born in 2009 and we have over 20,000 articles published on our blog. We thank all our readers, as well as our partners, without whom we could not have reached this level.

Subscribe

©2009 – 2024 SpeedLux – Daily Automotive News and Reviews. All Right Reserved.

This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. Accept Read More