revelation from about a weak ago that Uber
concealed a massive cyberattack - in which hackers stole personal data
from 57 million customers for more than a year - and paid the hackers
$100,000 to keep quiet (not to mention the plethora of other scandals
of late), investors in the private company have rightfully balked at
providing the $7-$10 billion worth of new equity it apparently needs
to keep the doors open.
it's probably not helpful, at least for Uber management, that the
company just reported another quarter of massive losses totaling some
$1.5 billion. Here's more from the Financial
adjusted third-quarter losses widened to $743m, up 14 per cent
from the previous quarter, on a measure
that excludes interest, tax and share-based compensation, the
those items brings Uber’s net losses to $1.5bn for the quarter,according
to generally accepted accounting principles.
Uber faces legal challenges around the world, including a
high-profile lawsuit from Waymo, closer to home, its litigation
efforts have become increasingly costly. The company also spends
heavily on marketing and discounts for its transportation service,
particularly in competitive markets such as India and the US.
revenues rose to $2bn in the third quarter, up 14 per cent from
the previous quarter, with gross bookings of $9.7bn.
course, as we
noted yesterday, SoftBank shocked some Uber
investors when they offered to buy shares in a new round of financing,
but only at a 30% discount to their previous valuation of $69
billlion. Meanwhile, even at that "bargain" price, General
Atlantic and DST dropped out of the original investor consortium
citing "growing risks" with the San Fran darling.
reports that SoftBank
and a coalition of investors will offer to buy shares in Uber at a
price that would value
the ride-hailing company at 30 percent less than its most recent
$69 billion valuation, according to two people
familiar with the matter.
deal isn’t done, however. Shareholders will need to sell at the $48
it’s 30 percent less than the current valuation, the offer would
represent a significant windfall for many early investors.
shareholders don’t agree to sell in sufficient numbers, SoftBank
could raise the price or walk away.
what say you? Are these all temporary blips for Uber or is there
a "Dead Unicorn Walking" in Silicon Valley?