Uber’s Shares Fall On Softbank Report
JUST IN: SoftBank is selling a significant chunk of its Uber stake — 45 million shares — to cover for losses it has seen in its investment of Didi Global, sources tell CNBC's @dee_bosa. pic.twitter.com/ITCygTfXm1— CNBC Now (@CNBCnow) July 28, 2021
The Japanese conglomerate Softbank bet big on money-losing tech startup Didi ahead of its IPO on 30 June, but since then DiDi shares have crashed by over 40 per cent after regulatory actions by China worried investors. Weeks before Didi went public in the U.S., China's cybersecurity watchdog suggested the Chinese ride-hailing giant delay its initial public offering and urged it to conduct a thorough self-examination of its network security, WSJ reported
*SOFTBANK SELLING PART OF UBER STAKE TO COVER DIDI LOSSES - Bloomberg— Lawrence McDonald (@Convertbond) July 28, 2021
*Credit risk relative to Tesla is just wow. SoftBank used to trade 300+ tighter than $TSLA - now wider (cost of default protection higher vs. Tesla, lower). pic.twitter.com/DPr9EGEFue
SoftBank is Didi’s largest shareholder, with a stake of over 20 per cent.
Softbank's investments - Uber, Doordash, Wework, etc - are cons. They launder Saudi oil billions with "businesses" that lose titanic amount of money for many years, while also preying on real businesses and their own workforce.— Cory Doctorow (@doctorow) May 19, 2020
Uber’s shares had fallen by as much as 5 per cent in aftermarket trading Didi shares have fallen by almost 40% since they started trading on the New York Stock Exchange on 30 June.
NEWS: sources tell me *Softbank* is selling a chunk of its $UBER stake to make up for losses in $DIDI— Deirdre Bosa (@dee_bosa) July 28, 2021
Softbank is in the red ~$4b on Didi stake as Beijing cracks down on Chinese ridesharing firm@davidfaber adds: its a block of 45m shares and has a 30 day lockup for any buyer
The headline, first brought by CNBC, causes a next blow for the Saudi-backed $100 billion Vision Fund. Didi is known for pushing Uber out of the Chinese market.