Carl Icahn invests in Lyft

Billionaire activist investor Carl Icahn has invested $100 million in ride-sharing startup Lyft. Icahn, known for investing in publicly-listed companies such as Apple, Netflix, and Ebay/PayPal, and then pressuring these companies to make radical changes to boost their value, believes that Lyft has a lot of potential for growth despite the presence of Uber in the market. Lyft raised $150 million at this funding round at a $2.5 billion valuation. The other $50 million investment came from anonymous sources. While other companies may cringe at the thought of Icahn being on board, Lyft executives are quite bullish. The new investment will allow them to broaden Lyft’s presence in the United States and innovate existing products. Also, being backed by Icahn, one of the most influential and well-connected investors in the world, will add a sense of legitimacy to Lyft that could help the company attract more funding in the future.
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