SoftBank may not invest in Uber if deal not sweet enough
SofBank has commented on its possible investment in the ride hailing app - Uber.
- SoftBank will review the number of shares and share price before investing in Uber.
- SoftBank was estimated to invest close to $10 billion.
- Uber is currently valued at $68 billion.
Cab hailing platform, Uber, could be on the brink of receiving a major investment from Japanese internet group, Softbank. However the deal is subject to caveats and conditions, the latter revealed on Tuesday.
“The Uber board and its shareholders, as well as the SoftBank Group side, have come to a basic agreement on a process for the SoftBank Group to make a future investment in Uber. However, while the SoftBank Group side is considering an investment in Uber, there is no final agreement at this stage,” SoftBank said.
The company was rumoured to invest close to $10 billion in Uber, a report by Reuters said on November 13. However this deal may not go through.
“If conditions on share price and a minimum of shares are not satisfactory for the SoftBank Group side, there is a possibility the SoftBank Group may not make an investment,” Softbank added.
Currently Uber is valued at $68 billion.
Uber board agreed to bring in SoftBank as an investor and board member, but negotiations had been slowed by ongoing fight between Benchmark and Kalanick, the Reuters report added.
Uber currently competes with Ola that together hold 90% of the ride hailing market. If the investment were to come through, Softbank would then become an investor in both companies.
Discussions between Softbank and Uber will now revolve around proposed price at which the former will buy stock and number of shares to be purchased.
The company has threatened to invest in ride-hailing rival Lyft if it does not get the Uber deal done, the Reuters report added.