Lyft hires investment banker Qatalyst to explore options, report says

Trip-sharing support Lyft has employed investment bank Qatalyst Companions, The Wall Street Journal documented on Friday, stating individuals acquainted with the problem.

Qatalyst was last reported to be hired by Postmates, the 0 million San Francisco-based delivery start-up.

A source close to Lyft told Bloomberg News it remains unknown if the company, a smaller competitor to Uber Technologies Inc., seeks a buyer or an infusion of cash from new investors.

The bank acted as LinkedIn Corp’s (LNKD.N) financial adviser in Microsoft Corp’s (MSFT.O) deal to buy LinkedIn for $26.2 bln.

The value and volume for USA -backed venture deals is down 40% and 20%, respectively, through the first five months of 2016, raising the possibility of more M&A activity, according to a PricewaterhouseCoopers report this month. Lyft and Qatalyst declined to comment.

The WSJ reported that one possible buyer could be General Motors, which paid $500m for a 10% stake in Lyft and is of the view that the ride-hailing service could play an important role to the future of automobiles. This could also possibly help the company better compete against its larger rival, Uber.

Earlier this year, Lyft closed a $1bn funding round that valued it at $5.5bn and included a $500m commitment from General Motors.

Lyft Inc., the second-largest US ride-hailing startup, is working with Qatalyst Partners LP to explore deal options, said a person familiar with the matter.