Technology

SoftBank could still walk away from Uber

(Source: techcrunch.com)

Uber said Sunday that it agreed to move forward on a proposed investment from SoftBank Group. But SoftBank Investment Advisors sent a statement to reporters on Monday on behalf of CEO Rajeev Misra, emphasizing that it could still walk away.

“After a long and arduous process of several months it looks like Uber and its shareholders have agreed to commence with a tender process and engage with SoftBank. By no means is our investment decided. We are interested in Uber but the final deal will depend on the tender price and a minimum percentage shareholding for SoftBank.” 

In other words, the price has not been determined for the tender offer and SoftBank wants to make it clear that it’s still negotiating. The company would potentially buy $9 billion worth of shares from existing shareholders at this price. SoftBank would also be investing $1 billion directly in Uber as an extension of the last Series G round, at its last private valuation of nearly $70 billion.

SoftBank’s Monday statement was in response to Uber’s Sunday statement about moving forward on an agreement with SoftBank.

“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. Upon closing, it will help fuel our investments in technology and our continued expansion at home and abroad, while strengthening our corporate governance.”

Uber and SoftBank have been discussing this potential deal for months. Part of the delay has related to determining former CEO Travis Kalanick’s potential role. Sources tell us that investor Benchmark Capital has agreed to drop the lawsuit against Kalanick if the SoftBank deal goes through.

Featured Image: Tomohiro Ohsumi/Getty Images

More Info: techcrunch.com

Advertisements