# SoftBank tender offer to existing Uber shareholders at 30% discount



## the ferryman (Jun 7, 2016)

http://www.zerohedge.com/news/2017-...oftbank-coalition-buy-uber-shares-30-discount

*Unicorn-holed: Softbank Coalition To Buy Uber Shares At A 30% Discount*


by Tyler Durden
Nov 27, 2017 7:14 PM
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And the *hits keep coming *for the unicornest unicorn in all of unicorn-land...

Back in the summer, we suggested - for numerous reasons - that Uber's next round of financing may come at a significant discount to its current $69 billion valuation.



Overnight, headlines hit that SoftBank was said to have learned of last year's hidden-to-the-public security breach about a month ago, and *may have changed SoftBank's evaluation of Uber's shares*, WSJ reports, citing people familiar with the matter. As a reminder, in addition to failing to notify users and the public about the information that was exposed, *the company paid the hackers $100,000 to delete the data and subsequently had them sign nondisclosure agreements*.

Furthermore, ReCode reports today that the city of *Chicago is suing Uber for failing to disclose the 2016 breach of 57 million users' data*.

SoftBank was expected to proceed with an offer to buy billions of dollars worth of shares from Uber stakeholders as soon as this week, with a *SoftBank-led investors group planning to start to buy at least 14% of Uber from existing shareholders through tender offer "at a steep discount."*



Well tonight we find out just how steep that discount is...

Bloomberg reports that *SoftBank and a coalition of investors will offer to buy shares in Uber at a price that would value the ride-hailing company at 30 percent less than its most recent $69 billion valuation*, according to two people familiar with the matter.

The deal isn't done, however. Shareholders will need to sell at the $48 billion price.

*While it's 30 percent less than the current valuation, the offer would represent a significant windfall for many early investors.*

If shareholders don't agree to sell in sufficient numbers, SoftBank could raise the price or walk away.

We suspect shareholders will be more than willing to dump their shares to monetize some of their rapidly declining investment or face being truly unicorn-holed.


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## tohunt4me (Nov 23, 2015)

And THEN what ?


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## SEAL Team 5 (Dec 19, 2015)

Yikes!!! I didn't know that Uber had a 30% Black Friday sale. 









I wonder what the year end sale is going to look like? Is Uber really only worth $48 billion now?


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## Fuzzyelvis (Dec 7, 2014)

https://www.nytimes.com/2017/11/27/...=WhatsNext&contentID=WhatsNext&pgtype=article


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## uberdriverfornow (Jan 10, 2016)

SEAL Team 5 said:


> Yikes!!! I didn't know that Uber had a 30% Black Friday sale.
> View attachment 179489
> 
> 
> I wonder what the year end sale is going to look like? Is Uber really only worth $48 billion now?


lol this is great


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## everythingsuber (Sep 29, 2015)

It does get a little tricky. For Softbank to get the numbers they need Google and Benchmark need to part with their shares. 

If Google and Benchmark bail 50% of their shares what does that do to undermine the value of the remaining shares they want to sell in the future. Uber has no assets to speak of the only reason people would invest in Uber is they think the value of the Uber will rise. The last round investors wish they had looked a little closer I'm sure?


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## SEAL Team 5 (Dec 19, 2015)

Fuzzyelvis said:


> https://www.nytimes.com/2017/11/27/...=WhatsNext&contentID=WhatsNext&pgtype=article


I love that word valuation. Valuation is what someone that has no interest in your commodity places a value on said commodity. I remember the "Dot Bomb" craze of the mid to late 90's and people investing basically in the internet cloud of website names.

I'm old school, I believe anything is only worth what someone will pay you for it. There isn't any forecasting, there isn't any predictability there is only cold hard numbers. Uber's numbers are basically one corporate office, many area offices, a bunch of servers with computer storage place and a couple thousand nerdy tech employees that have trouble communicating in English.

I suppose I did forgot their main asset. Uber has convinced 2.1 million contractors to do a task for only 30% of fair market value.


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## everythingsuber (Sep 29, 2015)

SEAL Team 5 said:


> I love that word valuation. Valuation is what someone that has no interest in your commodity places a value on said commodity. I remember the "Dot Bomb" craze of the mid to late 90's and people investing basically in the internet cloud of website names.
> 
> I'm old school, I believe anything is only worth what someone will pay you for it. There isn't any forecasting, there isn't any predictability there is only cold hard numbers. Uber's numbers are basically one corporate office, many area offices, a bunch of servers with computer storage place and a couple thousand nerdy tech employees that have trouble communicating in English.
> 
> I suppose I did forgot their main asset. Uber has convinced 2.1 million contractors to do a task for only 30% of fair market value.


The churn rate of those contractors is 96% per annum. Uber is also desperate to avoid future investors through IPO from finding out the earnings of said contractors. The problems most of us have seen coming miles away for Uber are getting closer.


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## TwoFiddyMile (Mar 13, 2015)

Delicious!


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## Taxi Driver in Arizona (Mar 18, 2015)

If I were an early investor in Uber, I'd take the money and run away from that mess as fast as I could.


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## Strange Fruit (Aug 10, 2016)

Why is it called a discount? The original value was just a number Uber put forth.
Do u wanna give me a million dollars, the value of my continued survival? I'll give u a 30% discount, so give me 700K.


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## tohunt4me (Nov 23, 2015)

SEAL Team 5 said:


> Yikes!!! I didn't know that Uber had a 30% Black Friday sale.
> View attachment 179489
> 
> 
> I wonder what the year end sale is going to look like? Is Uber really only worth $48 billion now?


Travis K. Himself said " EVERY YEAR SHOULD BE HARDER WITH UBER"

Well it is . . .
So it is . .

" LOWER SHARE VALUE MEANS MORE MONEY " !!!



the ferryman said:


> http://www.zerohedge.com/news/2017-...oftbank-coalition-buy-uber-shares-30-discount
> 
> *Unicorn-holed: Softbank Coalition To Buy Uber Shares At A 30% Discount*
> 
> ...





TwoFiddyMile said:


> Delicious!


Lions think Unicorns are Delicious.


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## driverdoug (Jun 11, 2017)

“Unicorn-holed” = Ouch-a!!!!

The last investors bought in at a stock price that valued the entire company at $69 billion. That’s how they got that number.


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## Strange Fruit (Aug 10, 2016)

driverdoug said:


> "Unicorn-holed" = Ouch-a!!!!
> 
> The last investors bought in at a stock price that valued the entire company at $69 billion. That's how they got that number.


Oh ok. They can use _discount_ then.


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## tohunt4me (Nov 23, 2015)

driverdoug said:


> "Unicorn-holed" = Ouch-a!!!!
> 
> The last investors bought in at a stock price that valued the entire company at $69 billion. That's how they got that number.


" Sell Wilbur Sell "!
" wilburrrrrrrrr "
- Mr. Ed the Trading Unicorn.

" you got to know when to hold em
Know when to fold em
Know when to walk away
KNOW WHEN TO RUN !"- Kenny Rogers

" Run Forrest Run."!



Strange Fruit said:


> Oh ok. They can use _discount_ then.


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## UberLaLa (Sep 6, 2015)

I'll just leave this here...


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## bpm45 (May 22, 2017)

Taxi Driver in Arizona said:


> If I were an early investor in Uber, I'd take the money and run away from that mess as fast as I could.


How would you do that as it is not a public company with no market for the shares?

New Softbank money does not buy shares from existing shareholders, it buys new, additional shares in the company providing new cash for the company to spend.


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## tohunt4me (Nov 23, 2015)

Humming " if you want it
Here it is
Come and get it
But you better hurry cause its going fast"
" you better hurry cause it might not last".
-COME AND GET IT - BADFINGER



UberLaLa said:


> I'll just leave this here...
> 
> View attachment 181746


It looks like the breasts of a 40 year old after multiple childbirths !

Perhaps
Even worse . . .!



bpm45 said:


> How would you do that as it is not a public company with no market for the shares?
> 
> New Softbank money does not buy shares from existing shareholders, it buys new, additional shares in the company providing new cash for the company to spend.


Please sir
Might i have some more DEBT ! - Tiny Tim in Ill eat your future Today.


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## Mista T (Aug 16, 2017)

bpm45 said:


> How would you do that as it is not a public company with no market for the shares?
> 
> New Softbank money does not buy shares from existing shareholders, it buys new, additional shares in the company providing new cash for the company to spend.


One billion is new money, cash infusion 
The rest is buying from existing shareholders.


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## goneubering (Aug 17, 2017)

SEAL Team 5 said:


> I love that word valuation. Valuation is what someone that has no interest in your commodity places a value on said commodity. I remember the "Dot Bomb" craze of the mid to late 90's and people investing basically in the internet cloud of website names.
> 
> I'm old school, I believe anything is only worth what someone will pay you for it. There isn't any forecasting, there isn't any predictability there is only cold hard numbers. Uber's numbers are basically one corporate office, many area offices, a bunch of servers with computer storage place and a couple thousand nerdy tech employees that have trouble communicating in English.
> 
> I suppose I did forgot their main asset. Uber has convinced 2.1 million contractors to do a task for only 30% of fair market value.


Their main asset is their large base of riders.


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## BurgerTiime (Jun 22, 2015)

I would ask for a 99% discount.


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