Lyft's $9 billion price tag was too high for GM
That's according to a new report by Amir Efrati at The Information, which claims that GM told Lyft's board of directors it would be willing to pay $6 billion for the ride-hailing startup. Another person told The Information GM's offer was closer to $4.5 billion plus Lyft's cash on hand - about $1.4 billion.
GM has invested $500 million in a strategic partnership with Lyft.
The $6 billion price is significantly lower than the $9 billion Lyft was reportedly asking for. Numerous sources claimed that Lyft had talked to six different companies, including GM, and had failed to find a buyer.
Lyft President John Zimmer told Business Insider last week that the company is not for sale and that the reports "crossed a line."
"Getting approached and then having it characterized as us wanting to sell the business and failing to do so is a large mischaracterization," he said. "If the company is approached, it doesn't mean the company is looking."
It appears that GM approached Lyft, then the company went and talked to other potential buyers as part of what Zimmer calls the "normal course of business" to try and get the highest possible price for a potential sale.
Lyft was not immediately available for comment on the latest report.