• Home
  • About
  • Advertise
  • Submissions and Discussion Policy

  • Business
  • Entertaiment
  • IT&Software
  • Science
  • Sport
  • People
  • Health Care
  • U.S.

Uber's valuation could be significantly slashed after SoftBank deal

  • by Louis Holland
  • in Business
  • — Dec 29, 2017
Share:

Uber now has a powerful strategic partner in SoftBank, the Japanese telecom giant that is investing hundreds of billions of dollars in technology. The Japanese conglomerate set a threshold for its bid at 14 percent and while it's now able to purchase almost 50 percent more than it originally planned, it's reportedly limiting its offer to a 15 percent stake. 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. Uber lost $1.46 billion in the third quarter this year, up from $1.06 billion in the previous quarter.

Uber investors and employees tendered shares equal to 20 percent of the company.

The deal nevertheless sharply discounts Uber's value, which a year ago was estimated at nearly $70 billion. Earlier reports have indicated that Dragoneer Investment Group and existing Uber backer General Atlantic may be among the interested parties. The move drops Uber's value by about 30 percent from around $70 billion to $48 billion - a reflection of the trouble that the ride-hailing company has experienced across 2017.

"We look forward to working with the purchasers to close the overall transaction", the Uber spokesperson said.

"We have tremendous confidence in Uber's leadership and employees and are excited to support Uber".

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.

When the deal is completed, the company will make governance changes, including expanding its board from 11 to 17 members including four independent directors, limiting some early shareholders' voting power and cutting the control wielded by former chief executive Travis Kalanick. However some Uber investors were concerned the price SoftBank was offering was too low, according to Recode.

Over the past year, a former employee's charges of endemic sexual harassment led to an internal review, London said it is stripping Uber of its license and Uber revealed it had covered up a major hack.

The Uber investment comes after a year of troubles for the company, including a lawsuit by Alphabet Inc's self-driving vehicle unit Waymo that alleges trade-secrets theft and federal investigations that span possible bribery of foreign officials in Asian countries and the use of software to evade regulators.

Share:

IN CASE YOU MISSED IT

  • Like Symbian WhatsApp Pulls The Plug On Old Blackberry and Windows Devices
  • Snow, frigid cold are on tap
  • Oswego County homeowners can now prepay 2018 property taxes
  • YOU MAY ALSO LIKE...

    • Amazon, Best Buy Smart TV Partnership Hurts Roku 4/19/2018
    • Facebook sued over facial recognition technology 4/17/2018
    • Panera finds new provider for romaine lettuce after E. coli concerns 4/17/2018
    • Russia Fails In UN Bid To Condemn US-Led Strikes On Syria 4/17/2018
    • Scientists engineer plastic-eating enzyme 4/17/2018
    • Delhi Daredevils beat Mumbai Indians by seven wickets in IPL match 4/15/2018
    • Investors can't wait for an expected high earnings report from Netflix 4/14/2018
    • Bitcoin Planet Trading Down 4.6% Over Last Week (BTPL) 4/13/2018
    • Uber Adds Safety Features for Passengers, Background Checks for Drivers 4/13/2018
    • VW to give workers a board seat 4/13/2018

RELATED NEWS

Nintendo won't be rolling out 64GB Switch cartridges until 2019
A report from the Wall Street Journal claims that Nintendo aims to release the 64GB game cards to developers in 2019. That's quite far away, but it shouldn't be much of a problem if the Switch is a continued success throughout 2018.
12/28/2017

Children From Neosho Killed In Crash In Newton County
The driver, Michael Stephens, 38, was also taken the hospital by ambulance with moderate injuries, the patrol said. An ABC11 crew at the scene said there were "possible injuries" in a head-on crash between two passenger vehicles.
12/28/2017

DP&L to send energy based battery storage containers to Puerto Rico
Dominion Energy Virginia announced on Tuesday that it is preparing to send restoration workers and equipment to the island. Aside from offering free health care, RAM also helped distribute 63,000 pounds of disaster relief supplies.
12/28/2017

DE urgent cares seeing an increase in patients with flu-like symptoms
The weekly report is now available online athttp://chfs.ky.gov/dph/epi/Influenza.htm and is updated each Friday before noon. During last year's flu season, 4,590 cases of flu were reported, about half of which were from New Castle County.
12/28/2017

Number of pregnant women using marijuana rises
The study, from the Journal of the American Medical Association (JAMA), notes that from 2009 to 2016, pot use among expectant mothers jumped from 4.2 percent to 7.1 percent.
12/28/2017

Chiefs starting rookie Patrick Mahomes vs Broncos
Either way, this week's game could give the Chiefs and their fans a glimpse into a future with Mahomes at quarterback. He's not expecting to put up those numbers against a strong Broncos defense on Sunday.
12/28/2017

Pregnant Khloe Kardashian hits back following workout criticism
When one follower asked how many weeks pregnant she is, she replied: "I'll be six months next week". An impassioned Khloe wrote: "For the ones who think they are physicians all of a sudden.
12/28/2017

Stores Hope for Post-Holiday Shopping Rush
Average spending per person over the five-day period was $335.47, with $250.78 - 75 percent - specifically going toward gifts. She does not shop the day after Christmas every year, but she did this year "because we need the Christmas lights".
12/27/2017

Simonds to legally challenge 94th District tie, drawing postponed
James Alcorn, chair of the Virginia State Board of Elections Chair, told CNN the board is looking into the situation. Republicans said the unknown voter had selected every other Republican on the ballot and meant to vote for Yancey.
12/27/2017

Liverpool 5, Swansea City 0: Man of the Match
Philippe Coutinho gave the Reds the lead in the sixth minute at Anfield as Jurgen Klopp's men got off to a solid start. Trent Alexander-Arnold added the third when Andrew Robertson's cross was only half cleared.
12/27/2017

Cardi B says 'leaked' Offset sex video was just a joke
Clearly, she forgave him, as later that month, she accepted his proposal when he got down on one knee at her concert. A woman was with him in the clip , but it didn't look like the famous rapper, leading to the infidelity accusations.
12/27/2017

Pres. Trump Slams FBI Over Use of Unverified 'Dossier' in Russia Probe
Her campaign hired a law firm which in turn hired Fusion GPS to find opposition research on Trump. Within minutes, Fox & Friends completed the circle by sharing the tweet with their audience.
12/27/2017

Treasury escalates pressure on North Korea with more sanctions
The test was Pyongyang's third ICMB test this year and its 20th ballistic missile launch of this year. China, which accounts for more than 90 percent of North Korea's trade, banned coal imports this year.
12/27/2017

Tips for proper disposal of Christmas trees
In Pender County, trees can be disposed of starting December 30 until January 15 at locations in both Hampstaed and Rocky Point. Trees must cut and put in the green waste carts, and placed curbside for pickup on regular green waste collection days.
12/27/2017

A porsche for Christmas
My girl didn't disappoint . "Thank you Jen I love you!" Instead of getting Kris an actual auto , Jennifer did the next best thing. And hey, at least Jenner's grandchildren - both born and unborn - will have a bloody hoot playing with J-Law's present.
12/26/2017

    • Top picks

      • Fed May Hasten Pace of Hikes as 'Economic Outlook Has Strengthened'4/07/2018
      • NASA taps Lockheed Martin for supersonic X-plane4/05/2018
      • Intel also shows 28W low-power U-series 8th gen CPUs4/04/2018
      • Japan's Abe to visit US4/04/2018
    • Weekly News

      • KBC Group NV Decreases Stake in Walmart Inc (WMT)4/02/2018
      • Trump 'has no actions' against Amazon - White House4/02/2018
      • Tracking more wet weather for weekend4/01/2018
      • Uber Kicked Out Of Arizona, Now Opts Out Of Tests In California3/30/2018
    • Latest News

      • Saudi Aramco to take 50% stake in Maharashtra refinery4/11/2018
      • Apple hits green goal4/10/2018
      • Bed Bath & Beyond (BBBY) Receives Daily Coverage Optimism Rating of 0.204/08/2018
      • Delta Air Lines (NYSE:DAL) Shares Bought by Two Sigma Advisers LP4/08/2018
    • Home
    • About
    • Advertise
    • Submissions and Discussion Policy

    Thursday 19 April 2018

    © 2018 . ALL RIGHTS RESERVED.