CNBC reports that a SoftBank-led consortium of investors seeks to buy $1 billion worth of fresh stock in Uber at its current valuation of about $68.5 billion and another $9 billion in existing stock from other shareholders. The ride-hailing company was reportedly close to being ready on Sunday to finalize the deal. The deal will see 14 percent of the company change hands.
Uber is burning through cash as it stays on an aggressive growth path to expand its business globally.
The company’s new CEO, Dara Khosrowshahi says that Uber is planning an IPO in 2019.
Uber needs as much cash as it can get its hands on until it goes public, and having a deep-pocketed investor like SoftBank helps in a big way.
It also allows existing investors to make some handy gains by selling their stock.
Keeping existing investors happy will be very important for the company leading up to the IPO.
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