SoftBank, which has already invested more than $8 billion in WeWork, had discussed potentially spending $16 billion to buy a larger position in the company.
Uber’s public offering could be one of the five largest of all time in the U.S. and is expected to be the biggest listing next year.
SoftBank, a Japanese conglomerate run by Masayoshi Son, owns more than 15% of Uber. Rakuten, an e-commerce company that began amassing a sizable stake in Lyft when the startup appeared to be an also-ran, now owns more than 10%.
It’s a troubling sign for a serially unprofitable business that hopes to get valued like a technology company in a planned initial public offering next year.
The best hope for resolving Uber’s Saudi stigma, insiders said, is for the company to go public, giving it more latitude to reshape its board. Public companies have little control over their investors, potentially absolving Uber of some of the blame for an autocratic bedfellow.
As it preps for its IPO next year, Lyft has been stressing its gains in ride-hailing. Uber, meanwhile, is trumpeting just about everything else.
Wall Street’s top banks, vying for a coveted underwriting spot on Uber’s IPO, suggest the San Francisco company could produce one of the most valuable offerings ever.
They’ve both raised hundreds of millions of dollars. But that isn’t stopping them from looking for new financing with even loftier valuations.
Uber CEO Dara Khosrowshahi has made the company’s food-delivery business a top priority ahead of a planned IPO in the second half of 2019.
Lyft plans to begin taking pitches from banks as soon as September, targeting March or April for the listing.