It’s been a rough year for Uber. From its CEO resigning to the federal investigation into possibly illegal practices، news breaking that it had previously covered up a massive data breach، and getting kicked out of London، most news related to the ride-hailing startup has been pretty bad.
But as 2017 draws to a close، one good thing has happened to Uber. It’s received a major investment from Japan’s SoftBank.
CNBC reports that a spokesperson for Uber has confirmed that the deal will go through، giving the Japanese telecom giant about 15 percent of the company. An additional 5 percent will also reportedly be made available to outside investors.
The offer values Uber at about $48 billion، a price 30 percent lower than the company’s previous valuation of $68 billion in June 2016. Uber is said to have accepted the lower valuation as a result of the many scandals it was part of over the last year.
The deal will also bring in more than $7 billion that Uber needs to grow in the near future. SoftBank’s newfound influence will also likely be helpful as new CEO Dara Khosrowshahi works to reform the company culture that led to so many scandals.
Early investors and employees will be able to cash out، as well، without needing to wait for an initial public offering that likely won’t happen until 2019 at the earliest.
SoftBank has invested in several other ride-hailing startups such as China’s Didi Chuxing، India’s Ola، and Malaysia’s Grab.