Uber Board Considers 3 Investment Offers to Buy Company’s Shares<br />The proposal incudes a small purchase of new shares at the current valuation, but the bulk of the investment would come through buying out existing shareholders at a discount via a so-called Dutch auction — an auction<br />that begins with a high price that declines until a buyer says yes<br />Dragoneer’s investment coalition wants to buy out shareholders at a discount to Uber’s current valuation,<br />and SoftBank is offering to buy shares at a lower valuation as well.<br />SAN FRANCISCO — Uber’s board has voted to move forward on proposals by two investment groups to buy shares in the ride-hailing service<br />and is considering a third offer, with any final decision set to affect who gains the upper hand at the company.<br />One of the proposals could also lead to the ouster of one investor whose firm — Benchmark — has an Uber board seat and<br />that some other board members believe is deliberately damaging the company.<br />To let Uber preserve its $68.5 billion valuation on paper, SoftBank agreed to put a small amount of new money into the company at that price.<br />Two of the three proposals include buying shares at a discount to Uber’s valuation,<br />but also provide a face-saving way for the company to maintain its $68.5 billion value.<br />But both groups would also purchase a small amount of new shares at Uber’s current valuation to keep the company’s value propped up on paper.<br />The board also earlier voted to go forward with a proposal from a coalition led by<br />the Dragoneer Investment Group to buy stock from Uber’s existing shareholders.
