Uber Will Sell Southeast Asia Unit For Exchange In Grab – CWEB.com
Uber CEO Dara Khosrowshahi has focused on redesigning the company’s reputation and instilling financial discipline to push toward profitability.
Uber’s loss was 61 percent in 2017 to $4.8 billion but the revenue has jumped since.
Partnering with Grab would also play into Softbank’s efforts to consolidate assets.
The Japanese tech giant bought about a 17 percent stake in Uber, mostly buying shares from existing investors.
Uber now has a powerful strategic partner in Softbank, the Japanese telecom giant that is investing hundreds of billions of dollars in technology.
Softbank and other parties will also give Uber $1.30 billion in new investment as part of the transaction.
Uber previously sold its Chinese operations to rival Didi for a 20% stake and merged its Russian business with Yandex for a 37% stake.
The deal isn’t finalized, but sources say making the deal could help Uber minimize costs to prepare for a possible IPO next year.
Investors must decide whether to cash in now or wait until the company goes public.
CWEB Analyst recommend a hold until the IPO comes into effect and the valuation will sky rocket at this point and investors can enjoy a very healthy profit.