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Uber has agreed in-principle deal to sell $10bn stake to Softbank led consortium

CRAPSICAB firm Uber has signed an in-principle deal that could see it raise capital by selling a $10bn stake to a consortium consisting of Japanese conglomerate Softbank and San Francisco company Dragoneer.

The SF investment group already had Etsy, Snap Inc and Spotify in its portfolio of investments, while Softbank has Boston Dynamics and ARM Holdings and to boast about.

“We’ve entered into an agreement with a consortium led by SoftBank and Dragoneer on a potential investment,” said an Uber statement.

“We believe this agreement is a strong vote of confidence in Uber’s long-term potential.”

A good news story for Uber is exactly what it needs to end a disastrous year which has seen the company torn apart from the inside out by scandals and mismanagement.

It seems like years, but in fact, it was only a few months ago that we saw Travis Kalanick ousted as CEO of his own company.

Uber says it will use the money to fund its expansion and investments in new technology. It is already heavily involved in autonomous freight transport.

The deal could be done and dusted by 2019, but a Softbank chief executive Masayoshi Son said recently that “whether we make an investment in Uber, or not, is not decided yet”.

He said that the pricing would depend on the small print (the devil truly being in the detail) as Softbank would be looking to buy out existing shareholders, who will be far choosier.

Noone has ever questioned Uber’s ability to perform, and in fact, it is often the cringe-making gaffs made by Uber’s top brass that has kept it from fulfilling its potential.

Whether it’s the surge pricing that was brought in after terrorist attacks in London, or wide-reaching accusations of an anti-female bias within the company, all eyes are permanently fixed on Uber, waiting for it to either stuff up again, or blossom. µ

Source : Inquirer

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