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Cazoo (by IPO) is soon going to have $2 billion of cash burning a hole in its pocket and has said publicly it wants to make acquisitions.
The Cazoo IPO will focus minds at rival Cinch (owned by BCA), who will be desperate to catch up. The fastest way to do that is by takeovers.
Not to mention Carvana US, the world's industry giant, who will need overseas growth to stoke its share price higher and has access to billions of spending money.
Lookers and Pendragon are executing a digital transformation and are already selling thousands of UK cars online every month, way ahead of Cazoo and Cinch.
As standalone firms, LOOK and PDG are tech unicorns. As takeover candidates, they are high-value targets.
Lookers has just grabbed a record 7% UK market share. Pendragon is about to rebrand its online operations as the "next Cazoo".
It all points to an electric few months ahead.
An online car revolution is sweeping the industry.
You say lookers aren’t bothered about a takeover.
It doesn’t work like that. If anyone was to make an offer that the BOD deem fair they have a legal obligation to recommend that to the shareholders
I still think PDG will be the more likely takeover target. Lookers have been approached many times but just aren’t interested. They have flash show rooms and great brands so should do very well on their own. I’m in both because I think they will rise for different reasons. PDG open to mergers and moving the online route so reckon most likely a takeover target from one of the new online IPO companies. Time will tell. Great day again here though
All sounds very "British" and a relentlessly hysterical climate of talking everything down and relentless misery...
Cazoo is the Amazon of cars. America "gets" it. The current valuation is $7 billion.
LOOK and PDG are (much) bigger online than Cazoo, and in prime position to grab a big slice of online car sales.
https://cardealermagazine.co.uk/publish/cazoo-confirms-listing-on-new-york-stock-exchange-in-deal-that-could-value-online-used-car-dealer-at-5bn/220164
Having had my rant, I’m fascinated to see how Cazoo progresses and will quite happily eat my shorts with a nice sweet chilli and yoghurt dip and some sweet potato wedges
Go Lookers
I want to embrace 4th Industrial Revolution
I know this business, the car is the tech
The sales channels can be made more efficient but seriously, delivering a car in a van and collecting it again in 7 days if you’re not happy - that is not cost efficient
I see smoke and mirrors with cazoo
Cool software and user interface
Infinitely Scaleable
Credible founder
But will never deliver volumes to meet valuation
That's a rather outdated "British" response and a bit "last century" ;-)
Online growth is the future, like US Nasdaq unicorns. And Lookers has it in spades. Cazoo is a $7,000,000,000.00 tech hero, listing soon in New York. Click and Drive (Lookers) is bigger than Cazoo...
not a tech unicorn skier, their marcap is real, backed up by an EV/EBITDA of 11.
Unicorns are a myth lol. This one is real, but nobody's noticed except me and Tony Bramhall aha.
Cazoo is currently averaging online car sales of 1000-2000 per month.
For comparison, Lookers is currently averaging online car sales of 5000-15000 per month.
Cazoo is reported to have a current valuation of £5 billion.
A like-for-like calculation values LOOK at £10-75 billion.
Today's LOOK marcap is £0.3 billion.
Lookers is not a car retailer.
It is a tech unicorn.
Potential 200-bagger...
https://www.expressandstar.com/news/business/2021/04/08/lookers-sells-44000-cars-online-in-quarter/