Softbank wants to pay 30% less for Uber stock than Uber’s recent $69 billion valuation

SoftBank Group Corp Chairman and CEO Masayoshi SonThomson Reuters

Japan’s SoftBank is planning to buy stock in Uber from existing shareholders at a steep discount to the ride-hailing company’s current valuation, according to a Bloomberg report citing anonymous sources on Monday.

Softbank’s offer will value Uber at $48 billion, roughly 30% lower than the $69 billion that investors valued the company at during previous fundraising rounds.

The deal would allow Softbank to purchase up to $9 billion of Uber stock from existing shareholders in a tender offer. Softbank also plans to invest $1 billion directly in Uber, at the $69 billion valuation. The official price of Softbank’s tender offer is expected to be announced on Tuesday.

The investment would mark the latest massive investment by Softbank’s $93 billion Vision Fund, and it would give Softbank, led by CEO Masayoshi Son, as much as a 17% stake in Uber.

With Uber’s IPO not expected to come before 2019, many early Uber investors are eager to cash in some of their shares in what has become the world’s most valuable privately held tech startup. But it’s not yet clear whether those investors will agree to sell their shares to Softbank at the discounted price.

Uber and Softbank representatives declined to comment.