The following is an excerpt from Henry Grabar | December 28, 2017 | Slate.com |
A very bad year has dropped Uber’s valuation from about $69 billion to $48 billion, a decline of 30 percent.
The Wall Street Journal has the scoop, reporting Thursday afternoon that early investors tendering stock agreed to a price drop that Japanese conglomerate SoftBank had proposed back in November.
In exchange for SoftBank’s investment, the Uber board agreed to a series of reforms designed to prepare the company for a 2019 IPO. Numerous outlets had reported in the fall that the company’s valuation would take a hit, after a year that began with a boycott and continued with a gantlet of scandals that culminated in the replacement of founder and CEO Travis Kalanick with Dara Khosrowshahi.
But the deal was contingent on shareholders accepting the lower price, which they did Thursday. SoftBank and its partners will take control of nearly 20 percent of the company, which complements the firm’s existing investments in Uber and its rivals.
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