Uber's String of Failures Might Have Cost Investors $20 Billion
Uber Technologies's string of leadership and business failures may have cost investors more than $20 billion, according to reports that suggest Japan's SoftBank (SFTBY) is seeking a 30% discount on its massive investment in the ride sharing group
Multiple reports, first revealed by Bloomberg, indicate that SoftBank, along with partners Dragoneer Investment Group and General Atlantic, is offering $33 a share, plus 1 billion in direct cash, for a 14% stake in Uber that would make it one of the San Francisco-based group's biggest stakeholders. The offer, however, is essentially a 30% discount to the assumed valuation of Uber, based on its last round of funding, and would peg its worth now at $48 billion.
The reports follow a major security breach at Uber that led to the theft of 7 million customers, emails and telephone numbers of around 50 million and licence plate information on some 600,000 drivers. Uber said late last week that it had informed SoftBank of the October 2016 breach, which resulted in a $100,000 payment to hackers and the alleged destruction of 57 million users' data, before it told the public.
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