wnol.info January 21 2018


Uber Sells Stake to SoftBank, Valuing Ride-Hailing Giant at $48 Billion

January 21 2018, 12:27 | Alonzo Simpson

Uber's valuation could be significantly slashed after SoftBank deal: Report

SoftBank Succeeds in Tender Offer for Large Stake in Uber

The deal is good news for SoftBank, which has been trying to get a stake in Uber for years, and good news for the ride-sharing company, which should see an immediate influx of much-needed cash. Employees and investors allegedly tendered shares representing 20% of the company. It marks the first significant piece of business for new CEO Dara Khosrowshahi, who is now preparing the embattled ride-hailing company to go public by 2019.

A former employee's charges of endemic sexual harassment led to an internal review, London has said it is stripping Uber of its license and recently Uber announced it had covered up a major hack.

The investor group is also buying about $1.25bn worth of new shares at a price that values the firm at nearly $70bn, a significantly higher price that is similar to what Uber shares fetched in its last fundraising round. The WSJ's reporting suggests that SoftBank's successful offer valued Uber at $48 billion. The company still faces numerous legal challenges, including a massive trade secrets lawsuit with Alphabet's self-driving vehicle unit Waymo and multiple government investigations into potentially illegal business practices. The tender offer period concluded on Thursday.

SoftBank is scooping up a large chunk of Uber's shares after it opened a tender offer, reports the Wall Street Journal.

More than anything, however, SoftBank's presence on the board of Uber should help bring an end to the in-fighting that has plagued the company all year. That's a roughly 30 percent discount over Uber's most recent valuation of close to $70 billion. The size of the board will expand from 11 to 17, which dilutes the power Kalanick wields.

Rajeev Misra, chief executive of SoftBank's Vision Fund, a tech investment vehicle, will be nominated to the Uber board, the Journal reported.



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