SoftBank Is Said to Seek Uber Shares at $48 Billion Valuation

The Uber logo is seen on mobile telephone in London Britain

Shareholders will need to sell at the $48 billion valuation.

Chief executive Dara Khosrowshahi, who took over in August, said two individuals outside the company "inappropriately accessed user data" in late 2016. The tender offer will launch on Tuesday, sources told Reuters, and investors have almost a month to respond.

If the price in sufficiently high and SoftBank can't cobble together a 14 percent ownership stake, the Japanese conglomerate could try and raise its bid in order to attract enough sellers. That's 30 percent less that the company's most recent valuation of $68.5 billion. While a number of Uber shareholders have agreed to sell shares, this part of the process could last as many as 20 business days, according to the sources.

A person familiar with the matter told Reuters SoftBank offered to purchase shares in Uber at a valuation of $48 billion.

Will investors sell Uber shares at a discount?

Almost all secondary transactions, when a new investor purchases from existing shareholders, come at a discount to the company's valuation.

"We are committed to changing the way we do business, putting integrity at the core of every decision we make, and working hard to regain the trust of consumers", Uber said in a statement. It has also weathered federal criminal probes into software Uber used to deceive regulators and allegations of paying bribes to authorities in Asia, and a lawsuit by Alphabet Inc's self-driving unit Waymo, accusing Uber of stealing trade secrets. The year 2017 did not go very well for Uber with co-founder and former CEO, Travis Kalanick, stepping down under pressure and the company accepting that it failed to reveal about the hack that leaked 57 million customer's and driver's data.

Details of the ongoing deal between SoftBank and Uber have emerged that the Japanese bank is willing to buy the shares of Scandal-hit ride-sharing company at a discount. However, "our information at the time was preliminary and incomplete", a spokesman said.

The breach and Uber's response could lead to fines, and provide ammunition for regulators around the world who want to keep Uber out of their areas, said Evan Rawley, a University of Minnesota business professor who uses the company for case studies in classes.

But reports earlier this month already hinted that stock offers were likely to be based on a lower valuation.

Related:

Comments


Other news