Softbank buys large stake in Uber

Alicia Cross
December 29, 2017

The price is at a 30 percent discount to the most recent valuation of $68 billion, but changes the way the board oversees the company, which is dealing with sexual harassment allegations, federal criminal probes and other issues.

The development suggests many investors in Uber are now prepared to cash out, with SoftBank's offer being beneficial to anyone who backed the company in a period between 2010 and 2013. The company still faces numerous legal challenges, including a massive trade secrets lawsuit with Alphabet's self-driving auto unit Waymo and multiple government investigations into potentially illegal business practices.

SoftBank has bought a major stake in Uber at a steep 30pc discount, after a chaotic year in which the ride-hailing firm faced a string of scandals, saw its chief executive resign and was hit with United Kingdom city bans.

The deal will allow SoftBank to invest a significant amount of its "Vision Fund", a $100 billion fund earmarked for technology-focused companies around the world.

Amanda Davis Cause Of Death
She also helped launch a segment titled Wednesday's Child, which helped find Atlanta children find permanent homes. Davis was on her way to Texas for her stepfather's funeral when she suffered the stroke, according to CBS .

Dominos: More Countries Pledge Embassy Moves to Jerusalem
Trump upended decades of US policy with his December 6 announcement that he was recognizing Jerusalem as Israel's capital. She added: "What we are doing is returning our embassy from Tel Aviv to Jerusalem, where we had it for many years".

Alleged British 'drug smuggler' escapes death penalty in Egypt
Laura Plummer, 33, from Hull, was arrested after she was found with the Tramadol tablets in her suitcase, on 9 October. Laura's family say she has already suffered vicious beatings at the hands of fellow inmates because she is foreign.

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 tender offer period concluded on Thursday.

Uber investors and employees tendered shares equal to about 20 percent of the company, the Journal reported, citing unnamed sources.

The SoftBank deal triggers new governance terms at Uber that were approved by the company's board in October, though.

The deal will also benefit Uber's employees, drivers and riders, said Chris Sacca, founder and head of Lowercase Capital, a major Uber shareholder that did not sell shares in SoftBank's tender offer. SoftBank will occupy two seats on the company's board and will now be an extremely influential player in decisions at Uber.

Other reports by Free-Prsite

Discuss This Article