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

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

The deal, which includes additional investment, is expected to be closed in early 2018. 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.

We are appreciative of the support from Uber's shareholders in the successful tender offer and look forward to closing the overall investment in January.


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. Most notably, the board of directors will be expanded from 11 seats to 17, up three of which are set to go to the Japanese telecommunications giant.

Softbank has made a series of high-profile tech investments and shown an appetite for investments in ride-sharing, backing China's Didi Chuxing and Southeast Asian taxi-hailing app Grab, among other companies. Nothing malicious has happened partly because Uber paid the hackers $100,000 to destroy the stolen information, CBS News confirmed last month. With this tender offer, Khosrowshahi was able convince some of the company's early powerbrokers, including venture capital firm Benchmark Capital, to whittle down their stakes in the company to bring on what he believes will be a stabilizing force in SoftBank. This is about 30 percent less than its previous $68 billion valuation, which means investors and employees who plan to offload some of their shares will be taking a major discount. It will also buy $1 billion of shares directly from Uber at the older $70 billion valuation.


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