In keeping with our mission to provide comprehensive advertising analysis, the MediaRadar research team puts together a report of the most important mergers and acquisitions news each week. Stay in the loop, whether you sell advertising space or focus on business development.
This week, Gap is making some big moves, Comcast is positioned for better cybersecurity tech, and Lyft is preparing for an IPO next month.
#1: Gap is Set to Change Up its Image
In two separate moves, Gap seeks to break free from its image as a cheap retailer. The San Francisco-based business announced that it will spin its value-based Old Navy brand into a separate company. The remaining brands (including Gap, Athleta, and Banana Republic) will be launched as a separate, yet-to-be-named company. According to Gap Chairman Robert Fisher, splitting the company in two will allow them a streamlined approach to better serve different customer bases.
In keeping with this move, Gap acquired high-end Children’s fashion brand Janie and Jack from The Gymboree Corporation for $35 million. The Gymboree Corporation filed for bankruptcy in January 2019 and has been selling its assets in recent weeks.
#2: Comcast Invests in Cybersecurity
Comcast has officially acquired the AI-powered cybersecurity firm, BluVector. Less than five years old, BluVector is most known for its use of advanced cyber intelligence and proprietary machine learning. Their technology helps to contain, analyze, and detect a variety of sophisticated cyber threats.
The two companies will work together to expand BluVector’s existing contacts as well as develop new cybersecurity technologies for telecommunications.
#3: Lyft Vies for Position with Moves Toward an IPO
Lyft filed for an IPO to launch in April. The move came after reports of Uber preparing its own IPO last month; Lyft will launch its public offering a few weeks ahead of its #1 competitor and 40 percent market share. The company’s filing showed that Lyft had a loss of $911 million on $2.1 billion in revenue last year.
According to reports from Reuters, Lyft is looking for a valuation of between $20 – $25 billion.