Yesterday, SoftBank and Uber agreed upon a long-awaited offer that came in at a valuation of $48 billion. The deal will unite one of the most valued startups with the most ambitious tech investment firm in the world.
This amount though is a 30% discount from Uber’s $68 billion valuations it received last June. However, SoftBank will further invest $1.25 billion at Uber’s previous valuation at the same amount.
Uber made a statement on this deal which reads as follows “We look forward to working with the purchasers to close the overall transaction, which we expect to support our technology investments, fuel our growth, and strengthen our corporate governance.”
The deal is expected to close by January of 2018 according to SoftBank. SoftBank got the reduced priced due to decreased confidence by co-founder Travis Kalanick leaving his CEO role, along with data breach and lawsuits. This all naturally led the company to agree upon the reduced deal.
Additionally, SoftBank also has investments with Didi Cuxing Of China which had purchased Uber’s Chinese Business and has since soared with nearly $10 billion in funding and now hopes to take on both Google & Tesla with self-driving vehicles.
An interesting connection between SoftBank and Uber is that Dara Khosrowshahi (who replaced Kalanick as Uber’s CEO) is a board member of Fanatics that are also backed by SoftBank. Khosrowshahi is so far known to be dedicated to improving Uber’s status in the market since he took office in October.