SoftBank bought 15% from Uber for 7.7 billion USD
Japanese conglomerate SoftBank has reached a deal and will invest more than 7.7 billion USD in Uber, against which it will receive a 15% stake in the shared travel company. The investment estimates the company at about 48 billion USD, which is 30% less than its previous round of funding when it was estimated at 68 billion USD.
So Uber is no longer the highest rated star in the world after a Chinese competitor Didi Chuxing Technology Co has raised 4 billion USD in funding last week and received an estimation of 56 billion USD.
As part of the deal, SoftBank plans to invest another 1.25 billion USD in Uber at an estimated 68 billion USD, as a rebate for current shareholders who worry that lower-priced purchases will undermine the value of the remaining units.
The conclusion of the agreement is critical for Uber, as a number of corporate changes hang, waiting for a successful deal. The company will add six new directors, including two from SoftBank, as well as extend voting rights to all investors.