Uber, has succeeded in sealing a multibillion – dollar investment deal from SoftBank Group. This move also paves more ways for Uber, especially in the area of a public offering which some say as part of the new deal has to happen before the end of 2019. This could make the $70b American company even more valuable.
The deal between Uber and SoftBank Group, will enable SoftBank Group buy $1 billion worth of new Uber stock , will also purchase shares from investors and Uber employees all this with an aim to get a 14 percent stake in the company. Uber currently is valued about $68.5 billion but currently its unknown how much the multibillion dollar deal is worth as none of the parties involved have commented on it publicly yet even though we hear it could be as much as $10b.
Uber in a statement said it has finally concluded its agreement (even though SoftBank says otherwise at least for now that it could walk away from even the basic deal they have “If conditions on share price and a minimum of shares are not satisfactory for the SoftBank Group side, there is a possibility the SoftBank Group may not make an investment”) with a consortium which was led by SoftBank and Dragoneer investment Group.
The deal is a sign that group has seen the potential the company has and “this will help boost our investment in technology and also help in the continued expansion of the company at home and abroad, while strengthening our corporate governance”, the statement added.
The deal between both parties allows other investors such as Benchmark to sell some of their shares at a huge profit. But in the coming weeks, there will be some series of wrangling over how much each shares are worth.
In October , the long awaited deal was made public but it was delayed by the corporate governance and legal dispute between Benchmark Group and the CEO Travis Kalanick but was later resolved and both parties ended their feud two days back which cleared the way for the potential SoftBank investment.