SoftBank Succeeds in Tender Offer for Large Stake in Uber
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Re: SoftBank Succeeds in Tender Offer for Large Stake in Uber
#2Does anyone really think that Uber has enough runway, or could ever get enough, to last until the necessary level of automation is developed? SoftBank though, between this and their incredibly favorable, conditional loan to Theranos really has an eye for distressed assets!
If someone does have a vision for a successful Uber, I’d love to hear it, not to try and pick it apart, just to understand what’s happening.
Re: SoftBank Succeeds in Tender Offer for Large Stake in Uber
#3Still a heck of a return for early investors:
> Seed investors in Uber who sell to SoftBank will make a ~3600x return. $1.6 million round in 2010 would now be worth $5.7 billion at offer price.
Re: SoftBank Succeeds in Tender Offer for Large Stake in Uber
#4Does anyone really think that Uber has enough runway, or could ever get enough, to last until the necessary level of automation is developed? SoftBank though, between this and their incredibly favorable, conditional loan to Theranos really has an eye for distressed assets! If someone does have a vision for a successful Uber, I’d love to hear it, not to try and pick it apart, just to understand what’s happening.
Is a 30% haircut really enough to make the investment worthwhile if Uber doesn't make it?
Re: SoftBank Succeeds in Tender Offer for Large Stake in Uber
#5A few observations:
Softbank has stakes in Didi, Didi has stakes in Uber, Uber has stakes in Didi, with this Softbank got stakes in Uber.
Uber is mostly successful in North America and Southern Americas. Didi is obviously successful in China and will expand to Southern Americas soon.
Europe is not an important market for these companies. Too much regulations and good public transportation won't allow them to thrive.
Softbank probably wants Uber to be limited to North America and have its companies like 99 and Ola compete with Uber in their markets.
If Uber is limited to US and Canada and a few small markets here and there, then it makes sense to see its valuation go down like this.
Softbank is competing with Uber in a global scale using a network of companies it invested in, including Uber!
Re: SoftBank Succeeds in Tender Offer for Large Stake in Uber
#6How often do companies come back from down rounds?
It seems like any company willing to take a down round is also fine with taking a publicity hit and a hit to morale, which suggests it's in an even worse spot compared to what the devaluation would suggest.
Is there precedent that suggests even that SoftBank will come out on top from this?
Re: SoftBank Succeeds in Tender Offer for Large Stake in Uber
#7Stop the eye catching title, It is very normal tender offer with some discount.
FB did http://allthingsd.com/20110210/exclusive-facebook-exploring-...
Re: SoftBank Succeeds in Tender Offer for Large Stake in Uber
#8A few observations: Softbank has stakes in Didi, Didi has stakes in Uber, Uber has stakes in Didi, with this Softbank got stakes in Uber. Uber is mostly successful in North America and Southern Americas. Didi is obviously successful in China and will expand to Southern Americas soon. Europe is not an important market for these companies. Too much regulations and good public transportation won't allow them to thrive.…
But Uber isn’t limited to the USA and Canada. At least, not like how Didi is limited to china:
https://www.uber.com/country-list/
https://en.m.wikipedia.org/wiki/Uber_(company)#Legal_status_...
Re: SoftBank Succeeds in Tender Offer for Large Stake in Uber
#9Does anyone really think that Uber has enough runway, or could ever get enough, to last until the necessary level of automation is developed? SoftBank though, between this and their incredibly favorable, conditional loan to Theranos really has an eye for distressed assets! If someone does have a vision for a successful Uber, I’d love to hear it, not to try and pick it apart, just to understand what’s happening.
They probably could if they focused on profitable markets. They’ve been burning money because they’ve been obsessed with growth as opposed to profitable growth.
Re: SoftBank Succeeds in Tender Offer for Large Stake in Uber
#10A few observations: Softbank has stakes in Didi, Didi has stakes in Uber, Uber has stakes in Didi, with this Softbank got stakes in Uber. Uber is mostly successful in North America and Southern Americas. Didi is obviously successful in China and will expand to Southern Americas soon. Europe is not an important market for these companies. Too much regulations and good public transportation won't allow them to thrive.…
This seems kinda odd, because one of the main plus points for me is that Uber worked somewhat internationally. I use Lyft only, but that was a key differentiator for me actually.
As a more interesting question, is there any difference between saying SoftBank is competing with Uber and that SoftBank has hedged against an Uber investment? I feel like the latter may be more the framing of these investments.