Uber Technologies (UBER) - Get Uber Technologies, Inc. Report shares fell Thursday following a report that Japanese financial services giant SoftBank is selling a chunk of its stake in the ride-hailing and delivery service app.
Uber shares were down 3% at $44.76 at last check after Reuters reported that SoftBank was selling about 45 million of its shares in Uber, lowering its stake in the company to approximately 100 million shares.
While not directly connected, reports indicated SoftBank may have sold the stake to offset steep losses from its investment in China-based ride-hailing app and potential Uber competitor Didi Global (DIDI) - Get DiDi Global Inc. Report.
A source told Reuters that the share-sale is unrelated to the performance of Didi and Alibaba (BABA) - Get Alibaba Group Holding Ltd. Sponsored ADR Report, and SoftBank simply felt it was a good time to take profits on a portion of its Uber stake.
CNBC first reported SoftBank's planned share-sale of Uber.
Didi in mid-June unveiled plans for a $10 billion listing on U.S. markets. It went public at the end of June, raising $8 billion, but revealed eight days later that it was being investigated by regulators in a move TheStreet’s Jim Cramer dubbed “chicanery.”
Didi shares tumbled further last week following reports that it could face potentially "unprecedented” penalties from the Chinese government. So far this month, American depositary receipts of the Beijing company that trade on the New York Stock Exchange have fallen 37%.
Other Chinese technology and Internet companies including Tencent Music Entertainment (TME) - Get Tencent Music Entertainment Group Sponsored ADR Class A Report have been under pressure amid an ongoing crackdown from Beijing to rein in internet and technology companies that it feels have circumvented rules and regulations that have caused a range of issues for the country and its economy, including data security, monopolistic behavior and financial stability.
Uber announced last week that it will acquire Transplace from TPG Capital, the private-equity platform of alternative asset firm TPG, for $2.25 billion in a cash and stock deal.