Report: Apple Eyeing Investment in Ride Sharing Giant Lyft

According to the New York Port, tech titan Apple Inc. (NASDAQ:AAPL) was recently in talks to invest in ride-sharing company Lyft.

The move will certainly raise some eyebrows over at Uber, the number one ride-sharing service worldwide, which just rolled out autonomous vehicles. From the report:

Apple was recently in talks to take a stake in Lyft, the No. 2 ride-hailing app in the US, as part of a “strategic partnership” that could pose a fresh domestic threat to Uber, sources told The Post.

The size of Apple’s potential investment in Lyft couldn’t be learned, and it’s not clear whether the talks are still ongoing, according to sources briefed on the situation.

Discussions about the possible partnership with Apple were focused on forming a possible competitive and operational alliance, sources said.

While a stake in the company was discussed, an outright acquisition was not:

“M&A was not discussed at all,” a source close to the talks told The Post, adding, “There’s no interest from Apple or Lyft in an acquisition” of Lyft.

It’s hard to believe Lyft wouldn’t be interested in an acquisition, seeing as the company recently hired investment bank Qatalyst Partners to explore strategic alternatives, which generally include an acquisition.

Apple has plenty of cash to acquire or invest in just about any company, and its ambitions to get into the car market have been widely known for several years. While Lyft may not be an exact fit right now, it could provide a foothold for the company to grow into the market in time.

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Apple shares rose $0.66 (+0.61%) to $109.17 in Tuesday morning trading. AAPL has gained about 4% year-to-date, versus a 7% rise in the S&P 500 during the same period.

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