Uber Signs Off On SoftBank Investment Deal For $1.2bn
Ride sharing company Uber has finalised its investment deal with Japanese telecommunications company Softbank, with the telco investing US$1.25bn into the company.
Dragoneers, TPG and Sequoia Capital also joined in on this investment. Softbank is now the largest stakeholder in the company holding a 17.5 per cent stake after Uber shareholders sold approximately $8bn at a discounted price to investors.
According to Bloomberg, ‘SoftBank also invested $1.25 billion directly into Uber at a valuation of about $70 billion, the same as 2016. The blended valuation is about $54 billion, said a person familiar with the matter.’
A spokesperson confirmed to TechCrunch the deal had been finalised, “We’re proud to have SoftBank, Dragoneer and the entire consortium in the Uber family. This is a great outcome for our shareholders, employees and customers, strengthening Uber’s governance as we double down on our technology investments and continue to bring our services to more people in more places around the world.”
Rajeev Misra, CEO of SoftBank Investment Advisers and Director at SoftBank Group Corp says,“We are very pleased to have successfully closed the Uber investment and appreciate the support and professionalism of the Board, management team and shareholders who made this transaction possible.
“Uber has a very bright future under its new leadership. It is now part of a wider SoftBank network ranging from Sprint to WeWork. I look forward to SoftBank helping Uber become an even bigger global success.”
This deal is also filling the pockets of Uber co-founder Travis Kalanick officially making him a billionaire by selling 30 per cent of his shares in Uber.