Telecom and internet group SoftBank is seeking to make a multi-billion dollar investment in US-based on-demand ride platform Uber, the Wall Street Journal reported today, citing people familiar with the matter.
SoftBank has reportedly already approached Uber, and the prospective deal would be made up of primary and secondary shares.
Talks concerning an in investment are still in the preliminary stages but it would theoretically take place after Uber has appointed a CEO to replace co-founder Travis Kalanick, who stepped down last month.
Founded in 2010, Uber runs a ride hailing service is present in more than 630 cities worldwide, 100 of which also have access to the company’s meal delivery service, UberEats. It was valued at $62.5bn as of its last significant funding round, in June 2016.
The company has raised about $11.5bn in debt and equity from backers including internet technology group Alphabet, software supplier Microsoft, media company Times Group, conglomerate Tata and Sons and Didi Chuxing itself, which invested $1bn in 2016.
A report by Bloomberg last week first revealed SoftBank’s interest in acquiring shares from early investors including venture capital firm Benchmark. SoftBank is already an investor in several Uber rivals worldwide, including Didi Chuxing, Ola, Grab and 99.
SoftBank also has $93bn to play with, through its recently closed Vision Fund, but according to the WSJ the fund will not be involved in any Uber investment due to a reluctance to cause conflicts with the firm’s existing portfolio companies.