Uber Board Considers 3 Investment Offers to Buy Company’s Shares
The proposal incudes a small purchase of new shares at the current valuation, but the bulk of the investment would come through buying out existing shareholders at a discount via a so-called Dutch auction — an auction
that begins with a high price that declines until a buyer says yes
Dragoneer’s investment coalition wants to buy out shareholders at a discount to Uber’s current valuation,
and SoftBank is offering to buy shares at a lower valuation as well.
SAN FRANCISCO — Uber’s board has voted to move forward on proposals by two investment groups to buy shares in the ride-hailing service
and is considering a third offer, with any final decision set to affect who gains the upper hand at the company.
One of the proposals could also lead to the ouster of one investor whose firm — Benchmark — has an Uber board seat and
that some other board members believe is deliberately damaging the company.
To let Uber preserve its $68.5 billion valuation on paper, SoftBank agreed to put a small amount of new money into the company at that price.
Two of the three proposals include buying shares at a discount to Uber’s valuation,
but also provide a face-saving way for the company to maintain its $68.5 billion value.
But both groups would also purchase a small amount of new shares at Uber’s current valuation to keep the company’s value propped up on paper.
The board also earlier voted to go forward with a proposal from a coalition led by
the Dragoneer Investment Group to buy stock from Uber’s existing shareholders.
