Well-known investor Carl Icahn reportedly sold his entire stake in Lyft to fellow billionaire George Soros prior to its IPO last Friday.
Icahn had a 2.7% stake in the ridesharing firm but sold it to Soros in advance of the IPO, the Wall Street Journal reported on Wednesday. The stake was equivalent to approximately $550 million at Lyft's IPO price of $72 per share.
Lyft (LYFT) shares have faltered since hitting a high of $88.60 in their first day of trading on Mar. 29. A pair of downbeat analyst notes on the stock pressured shares on Monday and Tuesday, sending them down 12%, though they recovered roughly 1.5% on Wednesday and closed at $70 per share. Shares of Lyft were down 0.4% to $69.75 in pre-market trading on Thursday.
Icahn first picked up a stake in Lyft in 2015, when he invested $100 million in the Uber rival and later followed it up with another $50 million. Lyft's other top shareholders include Fidelity Management, Rakuten Inc. and General Motors Co. (GM - Get Report) , according to FactSet.
The precise reason for Icahn's exit as a stakeholder isn't known, but he was reportedly unhappy with Lyft founders Logan Green and John Zimmer's decision to install dual-class share structure that granted them outsized voting power. Jonathan Christodoro, Icahn's designee to Lyft's board of directors, left Lyft's board in March.
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