(Mirror Daily, United States) – Softbank along with two investment firms are negotiating to purchase a sizable stake in the U.S. taxi-app firm Uber at a 30% discount. Uber is currently worth $69 billion.
If Uber agrees on the deal, its valuation will drop to $48 billion. Softbank along with General Atlantic and Dragoneer Investment Group is pushing for the $6 billion deal.
Uber’s freshly-minted chief executive Dara Khosrowshahi had promised investors to make the deal with the Japanese telecom giant a top priority. Khosrowshahi is confident the purchase would consolidate his company’s position by gaining a powerful ally.
This year, Uber has been embroiled in multiple scandals and the troubles are not over yet. The company’s founder Travis Kalanick had to step down amid a scandal about the firm’s work culture, while the U.S. Congress wants some explanations from the company for covering up a hack that affected more than 57 million people worldwide.
Softbank Eyeing a Large Stake in Uber
If the deal is sealed, Softbank and its allies plan to buy more than 14% of Uber stock from other investors. The investment will make the Japanese company one of the ride-hailing firm’s largest investors. Softbank announced a separate $1 billion investment in Uber.
After the deal, Softbank and its allies will secure two board seats. The news was first reported by Bloomberg, which cited unnamed sources familiar with the negotiations. Existing investors hailed the news because they will be able to sell the equity and see some gains despite Uber postponing the initial public offering.
The company promised to become public in 2019.
Negotiations are expected to kick off Tuesday and last more than 20 business days even though some Uber shareholders agreed to renounce their shares. Uber declined to comment on the deal.
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