SoftBank is scooping up a large chunk of Uber’s shares after it opened a tender offer, reports the Wall Street Journal. Employees and investors allegedly tendered shares representing 20% of the company. However, the Journal reports that SoftBank will limit its stake to 15%.
This deal would slash Uber’s valuation, the Journal writes:
SoftBank will likely limit the stake it acquires to 15% in the tender offer, which values Uber at $48 billion, the [people familiar with the matter] said. That is a roughly 30% discount to its most recent valuation of nearly $70 billion.
Lucky for Uber, the company will still retain its title of “most valuable startup,” as second place goes to WeWork, which is currently valued at $31 billion. Still, $48 billion is very different than $70 billion.
You can read the full Wall Street Journal story here.
Update: Rajeev Misra, CEO of SoftBank Investment Advisers and director at SoftBank Group Corp, provided Fast Company with this statement:
We are appreciative of the support from Uber’s shareholders in the successful tender offer and look forward to closing the overall investment in January. We have tremendous confidence in Uber’s leadership and employees and are excited to support Uber as it continues to reinvent how people and goods are transported around the world.