Technology By Marco della Cava 924 Views

What's Uber worth? 30% less says one report

SAN FRANCISCO — Japanese investment company SoftBank is keen to take a big stake in Uber, but only at a fraction of the ride-hailing company's previous valuation.

SoftBank has tendered an offer to buy $9 billion in Uber stock based on a valuation of $48 billion, or around 30% less than Uber's one-time high of $69 billion, according to a Bloomberg report Monday citing anonymous sources close to the deal.

SoftBank would also plan to invest $1 billion in Uber at the $69 billion valuation, according to the report. At $10 billion, the investment would amount to one of the largest private stock sales in history.

Uber declined to comment on the report.

If the sale were to go through, SoftBank and a small coalition of investors would own 17% of the ride sharing company, which has been buffeted this year by internal scandals and regulator inquiries into past business practices. 

The most recent scandal to hit the company and its newly minted CEO, Dara Khosrowshahi, includes a data breach last year that affected 57 customers and drivers. Uber executives not only did not disclose the breach, but they paid the hackers $100,000 to keep quiet about the matter.

In past days, Uber has been hit with a class action suit over the hack and Khosrowshahi has been sent angry letters from members of congress demanding more details about the company's behavior.




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