Cofounders Logan Green and John Zimmer could own just 2.65% of Lyft and retain 35% of the votes—here's why researchers say it's bad for shareholders.
Lyft President John Zimmer and CEO Logan Green could own less than 5% of Lyft's equity and still have nearly 50% of its voting power.power structure, which gives founders Logan Green and Josh Zimmer a concentration of voting power,"can be expected" to decrease Lyft's share value in the future, according researchers at Harvard Law.
They could also retain significant control while owning as little as 2.65% of the company's equity, the researchers found. Lyft shares closed at $74.55 on Friday, nearly $4 below its first trade when the company went public on March 29. While the stock has seen a slight recovery from its all-time-low of $66 in its first week of trading, Wall Street isn't quite certain on how to treat the stock in the long-term.
At the heart of their argument is Lyft's dual-class share structure. Shareholders that buy Lyft's stock on the public markets buy Class A shares, which come with one vote each. This is compared to the Class B shares that make up the majority of Green and Zimmer's respective holdings. Lyft's Class B shares each grant 20 votes on the holder.Following the IPO, Logan and Zimmer had an"absolute lock" on power while owning just 4.96% of Lyft's equity.
France Dernières Nouvelles, France Actualités
Similar News:Vous pouvez également lire des articles d'actualité similaires à celui-ci que nous avons collectés auprès d'autres sources d'information.
Lyft rises 8.7% on its first day of tradingFor years, Uber tried to bulldoze ahead of Lyft and other rivals through a mix of aggressive fundraising and dirty tricks. At one point in 2017, Uber's former CEO Travis Kalanick was caught bragging on video that it was 'a piece of cake' to compete with Lyft. 'I've beaten them,' he said.
Lire la suite »
Lyft gives up debut gains on second day of tradingLyft’s IPO joyride comes to abrupt halt on its second day of trading via ReutersTV
Lire la suite »
Lyft is a 'treacherous' stock, post-IPO action is 'extremely negative': O'LearyThe problem with Lyft, market watcher Kevin O'Leary says, is that 'it makes no money.'
Lire la suite »
Carl Icahn sold Lyft stake prior to IPO: WSJBillionaire investor Carl Icahn sold his roughly 2.7 percent stake in Lyft Inc a...
Lire la suite »
Lyft gives up debut gains in second day of tradingWall Street’s joyride with Lyft’s market debut comes to an abrupt stop via ReutersTV
Lire la suite »
Lyft falls further from IPO after receiving first 'sell' ratingLyft Inc's stock sank further below its IPO price on Tuesday after receivin...
Lire la suite »
Carl Icahn sold Lyft stake to Soros prior to IPO: WSJBillionaire investor Carl Icahn sold his roughly 2.7 percent stake in Lyft Inc t...
Lire la suite »
Why some green investors are passing on Uber and LyftSome environmentally focused investors are not ready to buy into Lyft Inc or Ube...
Lire la suite »
Lyft is having a messy first few days of tradingLyft was volatile in Tuesday trading.
Lire la suite »
Lyft's shares rise after Citron advises against shorting stockShares of ride-hailing company Lyft Inc rose as much as 4 percent on Friday, set...
Lire la suite »