UBER GETS A MAJOR INVESTMENT FROM JAPAN’S SOFTBANK.
As we all know 2017 was a rough year for Uber, from its CEO resigning to the federal investigation into possibly illegal practices, news breaking that it had previously covered up a massive data breach, and getting kicked out of London, most news related to the ride-hailing startup has been pretty bad.
But as soon as 2017 was ending, one final good thing happened to Uber, they’ve received a major investment worth $48 Billion from the Japan’s SoftBank.
According to a report from CNBC, a spokesperson for Uber has confirmed that the deal has been made, it’ll help Japanese telecom giant about 15 percent of the company. An additional 5 percent will also be made available for outside investors according to a report.
The offer values Uber at about $48 billion, a price 30 percent lower than the company’s previous valuation of $68 billion in June 2016. It’s said that Uber has accepted the lower evaluation only because of the scandals that happened last year.
This collaboration is also bringing $7 billion that Uber desperately needs to grow in the near future. SoftBank’s newfound influence will also likely be helpful as new CEO Dara Khosrowshahi wants to reform the company culture that led to so many scandals.
Early investors and employees will be able to cash out, as well, without needing to wait for an initial public offering that likely won’t happen until 2019 at the earliest.
SoftBank has previously also shown interest in several other ride hailing startups such as China’s Didi Chuxing, India’s Ola, and Malaysia’s Grab.