Uber Confirms SoftBank Investments
Uber’s board of directors have finally approved investment by SoftBank following months of tension between board members over the ride-hailing service’s valuation.
According to the report, this investment could be worth up to $10 billion. Recent reports suggest that Uber confirmed the deal after the San Francisco, California-based transportation firm agreed to the multi-billion investment by a consortium led by SoftBank and Dragoneer.
We’ve entered into an agreement with a consortium led by SoftBank and Dragoneer on a potential investment. We believe this agreement is a strong vote of confidence in Uber’s long-term potential. Upon closing, it will help fuel our investments in technology and our continued expansion at home and abroad, while strengthening our corporate governance.”
The group led by SoftBank and Dragoneer Investment Group is also planning to invest a much larger amount by buying up to $10 billion in Uber shares from employees and other shareholders, likely bringing its total ownership to at least 14% of the company.
These shares are expected to be purchased at a lower valuation, that has still not been determined.
The tender offer will provide an opportunity for potentially thousands of employees to sell shares more than a year before Uber’s anticipated 2019 IPO.