SoftBank offers to buy Uber shares at discounted $48 billion valuation

Reports of its offer come almost two months after the world's most valuable start up approved a huge investment by Softbank.

While an Uber spokesperson declined to comment on the deal to Bloomberg, a source in the know says the tender offer is expected to begin on Tuesday; now a number of Uber shareholders have agreed to sell shares as part of the process which could span up to 20 business days. SoftBank is also expected to make a separate US$1 billion investment in the company at the US$68.5 billion valuation. Shareholders will need to sell at the $48 billion price. The $48 billion price, confirmed by a person with knowledge of the figure, will however raise concerns about whether the secondary sale will succeed - SoftBank needs to accumulate 14 percent of the company's shares to trigger the so-called "tender offer".

However, the 30 percent discount is steep given Uber's plan to launch an initial public offering in 2019, said Phil Haslett, co-founder and head of investments at secondary marketplace EquityZen.

Since it was valued at $68.5 billion more than a year ago, the company has been hit by scandals, including accusations of sexual harassment.

Uber is also being sued in California and Chicago over a massive data breach in 2016 that affected 57 million customers and drivers. However, "our information at the time was preliminary and incomplete", a spokesman said.

If the deal goes ahead, Softbank would acquire the stock for almost 30% less than Uber's most recent valuation of $69bn in June 2016.

(Copyright © 2015. All Rights Reserved.)
 
Recommended

Cristiano Ronaldo's New Statue Accurately Captures His Handsomeness
The 30-year-old recently admitted that he is unsure whether he and Ronaldo, who routinely compete for the Ballon d'Or, will ever be friends.

Great Barrier Reef undergoes 'IVF procedure'
The team worked closely with the Great Barrier Reef Marine Park Authority to implement this ground-breaking pilot project. The larvae, thus formed, settle on the reef and create new colonies, which leads to replenishing of coral ecosystems.

Puneesh Sharma throws slipper at Akash Dadlani
He and Akash got into a bad fight, one that had an adverse impact for Puneesh when it came to nominations. He asks Arshi to sort out issue with Shilpa! Shilpa says that she is not interested in being her friend.

Senators Demand Answers About Uber Data Breach
It also led to the ousting of Uber's security chief Joe Sullivan and Craig Clark, legal director of security and law enforcement. Khosrowshahi wrote that Uber tracked down the two hackers and "obtained assurances that the downloaded data had been destroyed".

'Chennai Six' found not guilty, according to supporters
The Sun went undercover to get into the men's jail to film a plea to the UK Government from Mr Dunn. The ship was sailing in Indian territorial waters for almost a month before it was intercepted.

Trump's White House might ban staff from using personal mobile phones
Back then, White House's tech support department concluded that the Kelly's phone had been hacked . Officials say cybersecurity concerns spurred the proposal to ban use of personal phones at work.

Temple to hold 71st Annual Christmas Parade on December 4
As soon as that ends, Santa is headed to the Highland Village Fire Department, 12000 Highland Village Road, from 1-4 p.m. According to the city of Temple, the Christmas parade is one of the largest lighted Christmas parades in Texas.

Baltimore Ravens in playoff position after topping Houston Texans
Watt is out for the year with an injured back and linebacker Whitney Mercilus ruptured a pectoral muscle in early October. The Texans receiver had a huge game, tallying seven catches for 125 yards to give the Texans offense a huge boost.

Hamas Says Arms Red Line, Calls for Establishing Committee to Oversee Reconciliation
In Gaza, which Hamas has ruled since seizing it in 2007, there are no settlers after Israel withdrew in 2005. Multiple previous reconciliation attempts between the Palestinian factions have failed.

Apple could be working on a foldable iPhone, reveals patent
But we're not likely to see this happen in time for the next iPhone unless Apple has found a way to supercharge its supply chain. Microsoft is also said to be secretly developing a 2-in-1 device that can be worked as a phone and a tablet.

Newborn Found Dead Under Porch, Mother Charged
They believe the baby was born and placed in the crawl space sometime during the 24 hours before he was discovered. Hermick pointed out that there are laws in place to protect mothers who don't want their newborns, WPXI reported.

Hafiz Saeed asks United Nations to delete his name from terror list
Saeed, who has a United States dollars 10 million American bounty on his head for terror activities, was under house arrest since January 2017 and was released after 297 days.

A "genuine mobile port" of PUBG is coming soon to China
Tencent also confirmed that the development for the mobile version of the popular shooter is "ongoing smoothly". Once it officially releases in China, its sales numbers should climb even higher.

Tumblr founder David Karp is leaving after 11 years
Karp did not disclose if the end of the four years played a role in his departure from Tumblr and the larger Verizon conglomerate. Tumblr ultimately became part of Verizon's Oath subsidiary through the telco's $4.5 billion Yahoo acquisition this year .

How Insiders and Institutions are Trading Hewlett Packard Enterprise Company (HPE)
In related news, EVP Henry Gomez sold 55,200 shares of the business's stock in a transaction dated Thursday, November 2nd. For HPE , the company now has $9.58 Billion of cash on the books, which is offset by $3.85 Billion current liabilities.


More News

News
More News