Uber to Seek Partial Sale of $6.3 Billion Didi Stake

jocker12

Well-Known Member


Uber Technologies Inc. is seeking to sell part of its $6.3 billion stake in China’s Didi Chuxing, as it begins to shed minority holdings to raise cash, according to people familiar with the matter.

The San Francisco-based ride-hailing pioneer is beginning to monetize stakes in other companies in an effort to boost its own share price, the people said, asking not to be identified because the discussions are private. Uber shares were down about 3% Thursday in New York to $36.41, well below the $45 a share at which it went public in May 2019.

Uber Chief Executive Officer Dara Khosrowshahi is in discussions about the sale with Didi and SoftBank Group Corp., the Japanese conglomerate that is a major shareholder in both companies, the people said. While various scenarios are under discussion, one option is for SoftBank to team up with other investors to acquire a minority of Uber’s 15% stake, one person said. Didi, which needs to approve any sale, is unlikely to buy shares itself, another person said.

A spokesman for Uber declined to comment. Didi also declined to comment.


The Didi sale would be the latest divestiture by Uber designed to consolidate operations and abandon once sprawling global ambitions. This month, the company agreed to sell its European freight business and some of its stock in Russia’s Yandex. It’s also negotiating to sell some of its stake in the Southeast Asian ride-share company Grab, Bloomberg News has reported.

Uber got its Didi equity after it retreated from China in 2016 and sold its business there to its Chinese competitor. Didi’s valuation hit $56 billion as ride-hailing boomed, but its shares have slid in private-market transactions amid regulatory troubles and the coronavirus pandemic. Uber wrote down its Didi stake to $6.3 billion from $8.2 billion in the first quarter.

What Bloomberg Intelligence Says:
“Uber’s reported plan to sell a minority stake in Didi, and its proposal for a similar approach to Yandex, may help offset cash burn that’s compounded by a shift in bookings mix toward food delivery. But near-term Ebitda pressure may not subside given a reliance on its Mobility segment, where our calculations suggest Ebitda could decline 60-70% in 2020. Bloomberg reported the Didi proposal.” -- Mandeep Singh, Technology Analyst
Click here to read the research.
One issue may be determining the current value of those holdings. In secondary market transactions, sellers are looking to get at least the equivalent of a $33 billion valuation for their Didi shares, while buyers are seeking prices below that level, according to people familiar with the trades.
 

tohunt4me

Well-Known Member


Uber Technologies Inc. is seeking to sell part of its $6.3 billion stake in China’s Didi Chuxing, as it begins to shed minority holdings to raise cash, according to people familiar with the matter.

The San Francisco-based ride-hailing pioneer is beginning to monetize stakes in other companies in an effort to boost its own share price, the people said, asking not to be identified because the discussions are private. Uber shares were down about 3% Thursday in New York to $36.41, well below the $45 a share at which it went public in May 2019.

Uber Chief Executive Officer Dara Khosrowshahi is in discussions about the sale with Didi and SoftBank Group Corp., the Japanese conglomerate that is a major shareholder in both companies, the people said. While various scenarios are under discussion, one option is for SoftBank to team up with other investors to acquire a minority of Uber’s 15% stake, one person said. Didi, which needs to approve any sale, is unlikely to buy shares itself, another person said.

A spokesman for Uber declined to comment. Didi also declined to comment.


The Didi sale would be the latest divestiture by Uber designed to consolidate operations and abandon once sprawling global ambitions. This month, the company agreed to sell its European freight business and some of its stock in Russia’s Yandex. It’s also negotiating to sell some of its stake in the Southeast Asian ride-share company Grab, Bloomberg News has reported.

Uber got its Didi equity after it retreated from China in 2016 and sold its business there to its Chinese competitor. Didi’s valuation hit $56 billion as ride-hailing boomed, but its shares have slid in private-market transactions amid regulatory troubles and the coronavirus pandemic. Uber wrote down its Didi stake to $6.3 billion from $8.2 billion in the first quarter.


One issue may be determining the current value of those holdings. In secondary market transactions, sellers are looking to get at least the equivalent of a $33 billion valuation for their Didi shares, while buyers are seeking prices below that level, according to people familiar with the trades.
Ube can Lose Money in SO MANY WAYS !
 

goneubering

Well-Known Member


Uber Technologies Inc. is seeking to sell part of its $6.3 billion stake in China’s Didi Chuxing, as it begins to shed minority holdings to raise cash, according to people familiar with the matter.

The San Francisco-based ride-hailing pioneer is beginning to monetize stakes in other companies in an effort to boost its own share price, the people said, asking not to be identified because the discussions are private. Uber shares were down about 3% Thursday in New York to $36.41, well below the $45 a share at which it went public in May 2019.

Uber Chief Executive Officer Dara Khosrowshahi is in discussions about the sale with Didi and SoftBank Group Corp., the Japanese conglomerate that is a major shareholder in both companies, the people said. While various scenarios are under discussion, one option is for SoftBank to team up with other investors to acquire a minority of Uber’s 15% stake, one person said. Didi, which needs to approve any sale, is unlikely to buy shares itself, another person said.

A spokesman for Uber declined to comment. Didi also declined to comment.


The Didi sale would be the latest divestiture by Uber designed to consolidate operations and abandon once sprawling global ambitions. This month, the company agreed to sell its European freight business and some of its stock in Russia’s Yandex. It’s also negotiating to sell some of its stake in the Southeast Asian ride-share company Grab, Bloomberg News has reported.

Uber got its Didi equity after it retreated from China in 2016 and sold its business there to its Chinese competitor. Didi’s valuation hit $56 billion as ride-hailing boomed, but its shares have slid in private-market transactions amid regulatory troubles and the coronavirus pandemic. Uber wrote down its Didi stake to $6.3 billion from $8.2 billion in the first quarter.


One issue may be determining the current value of those holdings. In secondary market transactions, sellers are looking to get at least the equivalent of a $33 billion valuation for their Didi shares, while buyers are seeking prices below that level, according to people familiar with the trades.

This makes good business sense.
 

jocker12

Well-Known Member
Selling it for $2 Billion MORE

Would have made Sense !
Both companies hit the “iceberg” when they went public, and now they are slowly sinking.

We need to call Leo do Caprio for a sequel

7A053462-2FEB-4243-9D35-F2B75EAE94C7.gif
 

tohunt4me

Well-Known Member
Both companies hit the “iceberg” when they went public, and now they are slowly sinking.

We need to call Leo do Caprio for a sequel

View attachment 508655
Jack
Wake Up.
Uber needs you to Drive more.

" Lower Rates Mean More Money"!

( up is down)

" NO NEED TO TIP" !

( Less is More)
Screenshot_2020-09-18-13-27-53.png
Screenshot_2020-09-18-13-32-15.png


" Uber will Pay you Like One of its French Girls " !
Screenshot_2020-09-18-13-39-40.png

( uncanny Resemblance to Uber Crack . . .)
 
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TheDevilisaParttimer

Well-Known Member
That’s not going to happen. I don’t follow Didi shares but clearly the entire rideshare industry has been hammered by Covid. Time to sell as much of those questionable assets as possible before they drop further.
Depends on if you think Didi will outlast Covid. If so it would make sense to hold on to those shares until the virus pass and life returns to normal.
 

mbd

Well-Known Member


Uber Technologies Inc. is seeking to sell part of its $6.3 billion stake in China’s Didi Chuxing, as it begins to shed minority holdings to raise cash, according to people familiar with the matter.

The San Francisco-based ride-hailing pioneer is beginning to monetize stakes in other companies in an effort to boost its own share price, the people said, asking not to be identified because the discussions are private. Uber shares were down about 3% Thursday in New York to $36.41, well below the $45 a share at which it went public in May 2019.

Uber Chief Executive Officer Dara Khosrowshahi is in discussions about the sale with Didi and SoftBank Group Corp., the Japanese conglomerate that is a major shareholder in both companies, the people said. While various scenarios are under discussion, one option is for SoftBank to team up with other investors to acquire a minority of Uber’s 15% stake, one person said. Didi, which needs to approve any sale, is unlikely to buy shares itself, another person said.

A spokesman for Uber declined to comment. Didi also declined to comment.


The Didi sale would be the latest divestiture by Uber designed to consolidate operations and abandon once sprawling global ambitions. This month, the company agreed to sell its European freight business and some of its stock in Russia’s Yandex. It’s also negotiating to sell some of its stake in the Southeast Asian ride-share company Grab, Bloomberg News has reported.

Uber got its Didi equity after it retreated from China in 2016 and sold its business there to its Chinese competitor. Didi’s valuation hit $56 billion as ride-hailing boomed, but its shares have slid in private-market transactions amid regulatory troubles and the coronavirus pandemic. Uber wrote down its Didi stake to $6.3 billion from $8.2 billion in the first quarter.


One issue may be determining the current value of those holdings. In secondary market transactions, sellers are looking to get at least the equivalent of a $33 billion valuation for their Didi shares, while buyers are seeking prices below that level, according to people familiar with the trades.
If the Nasdaq Whale can move up the whole market, bringing up Uber stock price should not be a problem for him.
 

jocker12

Well-Known Member
If the Nasdaq Whale can move up the whole market, bringing up Uber stock price should not be a problem for him.
If you look at what Softbank is doing and what Uber is doing, there is a striking similarity.


and

Miami-based wireless group Brightstar sold by SoftBank to New York firm

speaking about the whale...

" SoftBank is a Japanese multinational conglomerate holding company which has been labelled as the ‘Nasdaq whale’ by the Financial Times. A string of other media outlets, including The Wall Street Journal, have reported that SoftBank has made massive bets on tech stocks using equity derivatives."
“SoftBank was riding the Nasdaq wave like a mutual fund,” Mitsushige Akino, senior executive officer at Ichiyoshi Asset Management Co told Bloomberg. “The market is falling now and investors have zero visibility, so they are selling SoftBank stocks."
from

 

mbd

Well-Known Member
If you look at what Softbank is doing and what Uber is doing, there is a striking similarity.


and

Miami-based wireless group Brightstar sold by SoftBank to New York firm

speaking about the whale...

" SoftBank is a Japanese multinational conglomerate holding company which has been labelled as the ‘Nasdaq whale’ by the Financial Times. A string of other media outlets, including The Wall Street Journal, have reported that SoftBank has made massive bets on tech stocks using equity derivatives."
“SoftBank was riding the Nasdaq wave like a mutual fund,” Mitsushige Akino, senior executive officer at Ichiyoshi Asset Management Co told Bloomberg. “The market is falling now and investors have zero visibility, so they are selling SoftBank stocks."
from

Forget the Whale, Robinhood Vegan Boys have been going through ARK Investments portfolio and buying the stocks .:laugh:
WKHS - example :laugh: it is up like 1 billion% over the last 3 months .:laugh:
 
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