Uber Sells Stake to SoftBank, Valuing Ride-Hailing Giant at $48 Billion

SAN FRANCISCO — A group of Uber’s largest shareholders have agreed to sell a

significant stake in the ride-hailing giant at a steep discount, according to two people familiar with the process who were not allowed to comment on it publicly. The sale is a big step for the company as it looks to calm investors and pave the way for an initial public offering in 2019. SoftBank Group and a consortium of investors plan to purchase 17.5 percent of Uber at a price of about $33 a share. That puts the value of the company at about $48 billion — a notable drop from the near $70 billion valuation Uber had commanded about a year and a half ago. “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,” Matt Kallman, an Uber spokesman, said in a statement. The deal, part of a tender offer process initiated by SoftBank last month, will allow some of Uber’s earliest shareholders, including employees and venture capital firms like Benchmark and First Round, to cash out and receive what will prove to be a large payday. Continue reading the main story RELATED COVERAGE SoftBank Is Said to Offer to Buy Uber Shares at a Steep Discount NOV. 27, 2017 Uber Reaches Deal to Sell Stake to SoftBank NOV. 12, 2017 Didi Chuxing, a Chinese Rival to Uber, Raises $4 Billion DEC. 21, 2017 ADVERTISEMENT Continue reading the main story But the discount is a humbling coda on a rough year for Uber, which has been rocked by a series of scandals, from claims of sexual harassment to revelations of a program meant to deceive law enforcement. The tender offer came at a particularly bad time for the company. Last month, Uber disclosed that it had covered up a security breach that had compromised the personal data of 57 million rider and driver accounts, and SoftBank was able to talk down the price of its investment.                                                                                                                   https://www.nytimes.com/2017/12/28/technology/uber-softbank-stake.html?rref=collection%2Fsectioncollection%2Ftechnology&action=click&contentCollection=technology&region