Softbank's bid to buy Uber shares based on a valuation 30% lower than the company rated in its last round has been largely successful, with about 15-20% of shares changing hands at that price.
This deal will not raise money for Uber itself but will allow employees and early investors to cash out some of their holdings – at a steep discount.
But to maintain the illusion of the previous “valuation” of $69 billion – which is critical for a properly hyped future IPO – SoftBank will also make a $1-billion direct investment into Uber at the $69-billion “valuation,” as part of the deal. Since startup “valuations” are based on the price paid during fund-raising, this $1-billion deal forms Uber’s new “valuation,” the same as the prior one. So the “valuation” illusion remains intact.
Turns out, Uber Shareholders Are Eager to Sell at 30% Discount [Wolf Richter/Wolf Street]
(via Naked Capitalism)
Evan Greer from Fight for the Future writes, "At this moment in history, it's just not okay for tech companies to support government agencies that are openly violating human rights. But while Salesforce's executives have been speaking out against US immigration policies, the company is maintaining a multimillion dollar contract with US Border Patrol. We […]
PepsiCo is buying SodaStream for $3.2 billion. SodaStream’s products, marketed as a healthy alternative to sugary sodas, fit Pepsi’s goal of “making more nutritious products while limiting our environmental footprint,” (Pepsi CEO Indra) Nooyi said in a statement. “Together, we can advance our shared vision of a healthier, more sustainable planet.” (CNN)
Economists like Alberto Alesina and Silvia Ardagna reshaped the world when their theories of "expansionary austerity" were put into effect after the 2008 crisis: the idea that governments could "increase taxes, cut spending, and grow strongly" was powerfully tempting to the world's leaders, who saw in them a way to pull out of a recessionary […]
Drones are undeniably cool, but not all of us have the Top Gun-level piloting skills required to fly them—unless you’re using TRNDlabs’ new Spectre Drone. Designed new and expert pilots alike, this drone is loaded with fly assist features to make piloting easy, all the while you explore using its built-in HD camera. It’s available in the […]
Whether you’re set to give the toast at your best friend’s wedding or a presentation at work, you’ll be relying on those public speaking lessons you slept through during high school. Scary thought, right? Thankfully, the Public Speaking Bundle is loaded with hacks, tips, and techniques that will get you speaking more naturally and with confidence, […]
The Adobe Creative Cloud suite is the foundation on which many creatives build their careers, but some of its programs, like Photoshop and InDesign, are notoriously complex, making it difficult for aspiring designers, photographers, and the like to break into their field. But, don’t get discouraged. The Pay What You Want: Adobe CC A-Z Lifetime Bundle […]