Uber is almost ready to finish a one of a kind business transaction. The ride-hailing company might receive a joint investment of up to $10 billion from Didi Chuxing, Dragoneer, and Softbank. If this goes through, the proportions of such a secondary transaction will definitely go down as a record in history. Original investors and employees of the company are in for a large gain. However, the company must agree to certain conditions in order to make this strategy a reality.
Uber Has to Agree to Certain Conditions such as Devaluating Company to $50 Billion
The multinational deal that Uber is ready to close has Japanese, Chinese, and American origins. The generous offer is reportedly unlocking both a major investment in Uber’s business and share buy-up from early shareholders or employees.
As a consequence, Japan’s Softbank could gain as much as 22% stake in the ride-haling platform. However, there are certain conditions that the company should agree with in order to finalize this monumental event.
The core deal breaker might be a major discount. Uber’s last valuation placed the company at a total of $69 billion. However, Softbank is trying to convince shareholders to start an auction operation beginning with a value of $50 billion.
Main Investor Softbank Is More Excited to Take Part in Uber’s AI Development than Its Original Ride-Hailing Service
Uber may have succeeded to spark new worldwide interest for a different type of ride service. Nonetheless, Softbank’s Masayoshi Son was attracted more by company’s development in AI.
At the moment, Japan’s main goal is to take part in the historic birth of self-driving cars. The country believes that this market has the power to disrupt and remodel the world as we know it.
This deal would definitely help Uber management shift away from the slippery slope the company fell on which led to numerous scandals. These brand defamations managed to show their presence in business numbers as well. Uber is currently losing revenue, and new CEO Dara Khosrowshahi has to play this game perfectly to reach a blockbuster deal.
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