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SoftBank's Tender Bid For Uber Massively Successful

SoftBank's Tender Bid For Uber Massively Successful

SoftBank has access to all kinds of technology that could be relevant to Uber's self-driving vehicle plans via its other investments, and with its help, Uber will be better positioned to expand into Asia. That would value the app-based taxi company at $48 billion, or about 30% less than the $69 billion valuation it had after its last funding round.

SoftBank, a Japanese tech and telecoms consortium, has acquired a 13-15 percent stake in Uber, according to the Wall Street Journal. Since then, Uber, which has yet to turn an annual profit, has endured scandal after scandal, changing how investors and the general public view the company.

A former employee's charges of endemic sexual harassment led to an internal review, London has said it is stripping Uber of its license and recently Uber announced it had covered up a major hack.

The deal is expected to close at the beginning of 2018.

But for Uber's existing investors and the ego of founder Travis Kalanick, the deal has some very bad news. The closing of the deal will also mark the end of the company's supervoting share structure, moving the company to a "one share, one vote" system that further weakens the influence of early executives and shareholders. Early investors like Benchmark Capital and Menlo are understood to be the ones that are selling the largest amount of Uber shares as part of SoftBank's offer and will see a return of approximately 3,600 times their investment. SoftBank will occupy two seats on the company's board and will now be an extremely influential player in decisions at Uber.

Uber's legal tangles include a lawsuit by Alphabet Inc.'s self-driving vehicle unit Waymo that alleges trade-secrets theft and federal investigations that span possible bribery of foreign officials in Asian countries and the use of software to evade regulators.

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