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PHOTO FILE: The Rakuten network facilities for its mobile network under construction are described in Tokyo, Japan, February 20, 2019. REUTERS / Kim Kyung-hoon / File Photo
TOKYO (Reuters) – Japanese Rakuten said on Monday that it would record a gain of 110 million yen ($ 989.74 million) on its investment in Lyft following the listing of its US company last week.
Rakuten becomes Lyft's largest shareholder with a 13% stake before its IPO. Lyft shares closed up 9% to $ 78.29 as they debuted on Friday, giving the loss-making company a market capitalization of about $ 22.2 billion.
Rakuten's shares were down 3% at lunchtime in Tokyo on Monday, underperforming the broader market. Its shares have risen 38% this year due to rising expectations from investors for returns on technology investments.
Among these bets are the $ 3.1 billion Career control company, purchased by Uber, and the Pinterest image sharing website, which requested its IPO.
Rakuten's finances are squeezed by the lower margins of its main e-commerce unit and is attempting to break into the Japanese telecommunications market with the arrival of telecommunication services in October.
Report by Sam Nussey; Edited by Muralikumar Anantharaman
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