Recently Alphabet-Googe’s parent company- agreed to inject $1billion into Uber’s main rival, Lyft.
Today and perhaps in response to Lyft’s investment, Uber has finalised a deal with Japanese technology conglomerate SoftBank to invest billions in the ride-hailing giant.
According to insiders who are familiar with the deal, SoftBank Group will buy about $1 billion worth of new Uber stock, then will offer to purchase shares from investors and Uber employees with the goal of reaching a 14 percent stake in the company. Uber currently is valued at $68.5 billion, but stock offers will be based on a lower valuation, so it’s unknown just how much the total multibillion-dollar deal will be worth.
In a statement, Uber said it reached an agreement with a consortium led by SoftBank and San Francisco investment, Dragoneer Investment Group. The deal according to the statement “will help fuel our investments in technology and our continued expansion at home and abroad, while strengthening our corporate governance.”
The move also clears the way for Uber, among the most valuable tech firms in the world, to sell stock to the public. Under the deal, the initial public offering will take place before the end of 2019.
The long-awaited deal was made public in October but was delayed by a corporate governance and legal dispute between investor Benchmark Capital and ousted CEO Travis Kalanick. Both sides ended their feud clearing the way for the SoftBank investment.