Carl Icahn & The Lyft IPO
- If Lyft goes public valued at around $25 billion as planned, Carl Icahn will make about 10X on his 2015 investment of $100 million in an instant: $1 Billion. But that’s nothing compared to what he could make in the future. The billionaire investment manager is planning a car revolution.
- The Lyft IPO date: TBD, but around March 18, when they begin a roadshow.
- Carl Icahn invested $100M in Lyft in 2015, a rare move for an investor that rarely invests in startups. Icahn usually takes big stakes in public companies, then uses his influence to force change. John Christodoro, an Icahn exec, is on the board, a classic Icahn move, but the similarities end there. With cars, he seems to be taking a different approach, and changing the entire industry.
- In addition to his Lyft investment, Icahn holds a controlling position in Hertz Global Holdings Inc, and many more car-related companies. But not Uber. The fact that Lyft is going public before Uber is interesting, and it might have something to do with Icahn.
- “If you look at these businesses as single things, I don’t think they’re that great,” he told Bloomberg last year, “there’s a secular change happening, which we see as a great opportunity, and it will be good for Icahn Enterprises.”
- In other words, it’s their combination that’s valuable. And sure enough, he’s already linking all of his car holdings and making a ton of money.
- By the way, Icahn invested in Lyft when it was worth (valued at) $2.5B and Uber was worth (valued at) $41B.
Icahn’s other car-related investments:
- Federal-Mogul Holdings Corp, which makes car parts. Icahn took the company private in 2018, sold it to Tenneco later in 2018 (Icahn made a 20% profit on that sale in just one year, actually), and he currently holds stock and a board seat. He will split the car parts business into two companies near-term, with one specifically selling parts to non-new car manufacturers.
- American Driveline Systems, a service center
- Pep Boys, a service center
- Auto Plus, also a service center
- Icahn has plans to acquire more mom-and-pop repair shops and collision-service outfits in the near-term, according to Bloomberg & The Post
- Not Uber
Partnerships between Icahn’s car investments:
- Pep Boys & Hertz: Icahn coordinated the placement of rental counters at Pep Boys shops.
- Lyft drivers can lease a Hertz vehicle, Pep Boys will inspect it, and if the car needs repairs, the driver can take it to Pep Boys.
- His service centers can buy parts from Federal Mogul/Tenneco.
- His auto-servicing franchises can sell relatively new cars after making repairs & to Lyft.
- Definitely more to come! Has a stake in Navistar, makes commercial vehicles…who knows!