Wednesday, July 2, 2014

Media frenzy over Capital New York’s scoop on possible takeover of Citi Bike operator

At 7 am, Capital New York posted

An excerpt

About three weeks ago, Mayor Bill de Blasio's administration, a company called REQX Ventures and Alta Bicycle Share, the system's troubled operator, agreed on the broad outlines of an agreement, according to two knowledgeable sources.
According to the terms of that still-tentative agreement, REQX Ventures, a company run by individuals affiliated with Equinox and Related Companies (the real estate company that owns Equinox) would buy at least 51-percent of the Portland-based company.

At 10 am, New York Business Journal posted

An excerpt
There appears to be a tentative agreement for Alta Bicycle Share, Citi Bike’s Portland, Oregon-based operator, to sell a majority stake of itself, according to a report by Capital New York.

Then around noon, bam, bam, bam

An excerpt from Curbed NY
As expected, a deal with the investment firm REQX Ventures, created by Equinox Gym and its parent Related Companies, will likely keepCiti Bike afloat. Capital New York reports that the deal is close to being finalized, but city officials have been "moving slowly to seal it."

An excerpt from the gothamist
Faced with busted docks, faulty software, and a dearth of profit from 24-hour and 7-day users, Citi Bike, a success in terms of popularity, has been a failure where it counts. Its financial namesake won't grope between the couch cushions to support it, and De Blasio has declined to allot municipal funds for it either. So what happens to public projects that everyone wants and needs but refuses to fund? Private real estate to the rescue!

An excerpt from The Real Deal
The de Blasio administration has come to a tentative agreement to boost the troubled Citi Bike program.
The administration reportedly approved a deal between REQX Ventures and Alta Bicycle Share. Talks between the three parties started in May.

Then at 3:30…

An excerpt from Mashable
Citi Bike, the New York bike-sharing service, has been struggling with cash flow since its inception. But it might soon be able to ride out its money troubles thanks to an investment company affiliated with the gym Equinox.

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