SoftBank Drops Uber Bid by 30 Percent
In light of Uber’s 2017 woes, the Japanese firm angles for a discount.
As part of a previously-announced investment plan, Japan’s SoftBank is looking to purchase shares in Uber. However, the company is aiming to snag a percentage of the ride-share services shares at a discounted price.
Although Uber was valued at approximately $69 billion USD, SoftBank’s offer reportedly places the company at a net worth of approximately $48 billion USD, about 30% lower. Investors are being offered $33 USD per share by the Japanese firm as it aims to purchase roughly 14% of Uber’s existing stock. This apprehensive offer comes on the tail end of a tough year for Uber — stolen data and other scandals led to its CEO Travis Kalanick’s resignation, although its stock prices held firm.
Uber stockholders are likely to reject or accept the offer within 20 business days — if rejected, SoftBank is free to raise its offer or simply walk away. In the meantime, San Francisco-based start-up recently completed a $1 billion deal with Volvo for over 20,000 driverless cars.
