The past year has been full of downs for Uber Technologies Inc. due to a number of factors in the administration as well as on the roads. There was a time when Uber was considered the top of the game in terms of ride-hailing companies. Now, this ride-hailing giant has lost a majority of its value in the market due to its unpopularity. People tend to trust the company less because of problems in the administration and a number of incidents about the negative behavior by drivers popping up. In fact, the giant recently lost its license in the UK which is a major drawback in financial terms. In order to bring itself back on track, SoftBank has decided to invest in the same.
SoftBank, the Japanese technology conglomerate is known for its investments in tech companies from across the world. The organization first analyzes the value of such tech firms in the Silicon Valley and then invests accordingly. It has kept aside funds worth $90 billion for such investments. Uber is known to have a good reputation in the market before its downfall took place. The ride-hailing giant is hopeful to get back on track with the right leadership and sufficient funds. This is why a number of replacements took place in the head offices of the organization. It seems that this tech firm wants to start afresh this year and bring up its stock prices on an immediate basis.
More about the SoftBank investment in Uber
Uber confirmed the news about the SoftBank investment in an official statement released on Sunday. This statement also contained detailed information about the same. According to the spokesperson who elaborated on the details, SoftBank will buy Uber’s stocks which will add up to around $1 billion. After this, the Japanese conglomerate will put in the rest of the money by purchasing the company’s shares from its employees and investors.
The current value of Uber adds up to around $68.5 billion. Out of this, SoftBank will buy shares worth approximately $9 billion. This means that the total SoftBank investment will go up to $10 billion. The announcement of the exact figures will take place soon. The ride-hailing giant further stated that both the organizations finalized the business deal in order to invest in technology. This investment will serve as fuel to the technological advancement of the company. As a result of this deal, Uber will not need to sell its stocks to the public.