Weekly Update #159: What Uber's China deal means for Lyft

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Hello Investors,
What a potential Uber IPO means for Lyft
This week's big M&A news was that Uber is selling its China business to Chinese ride-sharing company Didi Chuxing, in a deal worth $35 billion.
While the sale puts a bit of a dent in Uber's plan of global transport domination, it will also free up the company's ability to go public in the near term.
(...except, not China.)
Uber's failed attempt at winning the market in China was costing it nearly $1 billion a year. With the announced sale to Didi, Uber has made significant strides towards a profit-generating enterprise: the company announced that it's now profitable in the US, as of April 2016.
With the failed Chinese growth strategy behind them, Uber now has a near-profitable, growing technology business that should be well-received by public market investors.
"Okay okay, we get it. What does that mean for Lyft?"
It has to do with antitrust. Uber benefits from having a successful (albeit smaller) rival in Lyft. This would suggest that Uber will steer away from trying to destroy their competitor. But it also removes any likelihood that they would acquire Lyft.
Furthermore, the acquisition raises some concerns for Lyft, as they were previously tied to Didi Chuxing in an anti-Uber global alliance (along with Ola Cabs in India and GrabTaxi in SouthEast Asia). Will Didi continue to provide support Lyft, or might they terminate the relationship? Didi has not commented yet.
Phil Haslett | Founder + Head of Investments | EquityZen 
In other news...
“The venture capital industry faced worries earlier in the year that it had hit a rocky patch. Yet investors keep pouring money into mammoth new venture funds."
“Uber is believed to have conceded domination of China’s ride-hailing market to rival Didi Chuxing, but it’s not walking away empty-handed."
“Data integration company Talend made its debut on the Nasdaq"

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