Softbank bags Uber bargain

SOFTBANK has bought a major stake in Uber at a steep discount, after a chaotic year in which the ridehailing firm faced a string of scandals.

According to a source familiar with the deal, Uber’s shareholders are selling more than a 14pc stake to an investor group led by Softbank, crossing the threshold needed for the deal to complete.

The tender offer values Uber at $48bn (£36bn), almost a third lower than its most recent valuation of $69bn. It follows a series of speed-bumps for the firm, including alleged sexual harassment among staff and a data breach affecting 57m users.

The tender offer is, however, just one part of a two-tier deal, and Softbank will also buy $1.25bn in Uber shares at the $69bn valuation.

All in all, Softbank and the other investors will eventually own a 17.5pc in Uber, sources say.

Uber said it expects the deal “to support our technology investments, fuel our growth, and strengthen our corporate governance”.