SoftBank would opt out if arriving at the right price for Uber was difficult.
SoftBank has been contemplating a significant investment worth several billions of dollars in Uber for some months now. In August, SoftBank CEO Masayoshi Son has hinted that he was keen to invest in either Uber or Lyft before entering the US market. In October, negotiations with Uber reached a fever pitch, and an investment was nearly final. However, in a recent press conference, Son stated that he could still walk away from the deal, and invest in Uber’s biggest rival in the US, Lyft.
“Depending on the price and conditions, it is wholly possible we could shift our investment to the other main company Lyft. We won’t know until the very end,” Son announced a press conference following SoftBank’s second-quarter earnings. Son explained that he would not invest if arriving at the right price was difficult, Bloomberg reported. SoftBank is expected to buy from Uber’s existing shareholders, and the “buying process” also includes voting rights of board members. ALSO READ: SoftBank’s investment in Uber ‘very likely’ to be finalized by next week: Reports
Earlier reports suggested that SoftBank could pump in up to $12 billion in the $69-billion Uber. That would give the Japanese firm a sizeable stake in the ride-hailing major, as well as reduce control of erstwhile investors like Benchmark Capital which had give Uber a tough time over allegations of mistrust. Uber board member Arianna Huffington, who was also a part of the CEO search committee, had said that Uber was still “waiting on what’s going to transpire in terms of the price.” And Son’s latest statements could indicate a rift between the investor and the firm over prices. ALSO READ: SoftBank keen to invest in either Uber or Lyft before entering America: Reports
And Uber’s loss would be Lyft’s gain. Lyft has aggressively expanding in the US and currently services over 40 million users. It has started operations in 131 new cities in 2017 alone. Following allegations of sexism and harassment at Uber, hordes of Americans had started the #DeleteUber movement earlier in the year that led to a spurt in Lyft’s user-growth. In no uncertain terms, Lyft has been the biggest beneficiary of Uber’s troubles. A SoftBank deal at this stage will send it to fourth gear and leave Uber with plenty to worry about.