Uber seals investment deal with Softbank

DETROIT: Japanese technology conglomerate Softbank has reached a deal with Uber to invest billions in the ride-hailing giant.

Uber Technologies Inc confirmed the investment in a statement issued late on Sunday, without giving details.

But a person briefed on the deal told The Associated Press that Softbank will buy about $1 billion worth of new Uber stock, then will offer to purchase shares from investors and Uber employees with the goal of reaching a 14% stake in the company.

Uber is valued at $68.5 billion, but stock offers will be based on a lower valuation, so it’s unknown just how much the total deal multibillion-dollar deal will be worth, said the person, who spoke on condition of anonymity because details were not released.

Uber’s statement said it reached an agreement with a consortium led by Softbank and Dragoneer Investment Group. The deal is a vote of confidence in the company’s potential and “will help fuel our investments in technology and our continued expansion at home and abroad, while strengthening our corporate governance,” the statement said.

The move also clears the way for Uber to sell stock to the public. Under the deal, the IPO will take place before the end of 2019.

Softbank in Tokyo declined comment.