Dec. 28 (UPI) — SoftBank Group Corp. bought a major stake in Uber Technologies Inc. on Thursday in a 30 percent discount on the ride-hailing company’s valuation, the companies announced.
The offer values Uber at $48 billion, down from the company’s $68 billion valuation in June 2016. Additionally, SoftBank intends to invest about $1.25 billion in Uber at the higher valuation.
Uber investors and employees tendered shares worth about 20 percent of the company, sources told The Wall Street Journal.
“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,” Uber said in a statement.
SoftBank said it planned to close the deal next month.
“We have tremendous confidence in Uber’s leadership and employees and are excited to support Uber.”
As part of the deal, Uber plans to add six directors, two of whom come from SoftBank, and expand voting rights for all investors.