>> Japanese investment giant, SoftBank, and a group of investors, successfully grabbed a piece of Uber. Paying 30% less for it than the last buyer shelled out, Uber confirmed on Thursday. At that price, the ride hailing app is worth $48 billion, a striking drop from a $68.5 billion valuation it boasted last year.
When it was still the darling of Silicon Valley. SoftBank about a month ago, offered to buy up private shares of Uber, currently owned by employees and early investors. By Thursday, the deadline for the offer, there was enough interest for the deal to move ahead. According to a Reuters source, SoftBank and other investors will own about 17.5% of Uber.
Reuters reporter, Liana Baker.>> This is a huge vote of confidence for Uber's new management team. After all the governance changes they made, to get this deal done with SoftBank. Uber's new CEO has set a 2019 deadline for it's IPO, so this could be one of the most important steps.
To get everything cleanly organized ahead of that sort of, major financial event for Uber.>> Softbank CEO Masayoshi Son, has predicted that ride hailing apps will change the world. And has bought stakes in many of the top ride sharing players around the world. The deal comes as Uber struggles with regulatory hurdles in several countries.
And legal fallout, from coming clean last month about a 2016 data breach, that it paid to keep secret. The company has also struggled with claims of sexual misconduct. And a series of crises, that led to the departure of founder, Travis Kalanick.