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Uber is Being Sold to Soft Bank

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Uber has struck a deal worth $10 billion with Japanese conglomerate Softbank and San Francisco group Dragoneer

The money would help Uber to expand and invest in technology.

Uber informed, “We’ve entered into an agreement with a consortium led by SoftBank and Dragoneer on a potential investment. We believe this agreement is a strong vote of confidence in Uber’s long-term potential.”

Uber is facing huge competition globally and it needs the funds to expand and improve its services. Uber wants to strengthen its corporate governance. With so many scandals, issues and controversies, Uber need this investment.

Softbank has yet made no comments on the deal. Softbank chief executive Masayoshi Son though said, “Whether we make an investment in Uber, or not, is not decided yet”.

2017 has been a tough year for Uber from boardroom fights, allegations, and scandals to major controversies. Is Uber still worth $68bn?

Now what we know is that SoftBank will buy at least 14% of Uber stakes. Softbank will buy Uber shares using a process known as a tender offer that completes in a month. In this process, a price will be decided for existing Uber shares. If Uber is hesitant to sell and SoftBank does not get 14% of ownership, Softbank can cut off the deal.

Recently another news circulated that Uber is collaborating with NASA and starting flying taxi services soon. Which means that Uber needs money for such a massive project.

Interesting: Uber launching UberAir service soon