Sequoia, Tencent, TPG look to invest in Uber alongside SoftBank

It’s not simply SoftBank and Dragoneer that square measure trying to shop for Uber shares from the staff and alternative shareholders once the offering launches, doubtless later nowadays.

Sources tell U.S.A. that redwood Capital is trying to extend its stake in Uber this fashion. the opposite investors on the list embody Tencent and TPG.

SoftBank has created a proposal to buy the shares at $32.96. this can be a steep discount to the $48.77 from the most recent Series G spherical.

The cluster of investors square measure trying to shop for regarding $8 billion in shares. If they are doing not realize enough sellers to satisfy the $8 billion, it’s doable that they'll increase the asking price.

There’s additionally a $1 billion direct investment in Uber, which might worth the corporate at its last personal valuation of nearly $70 billion.

Sequoia has antecedently endowed in Uber through its “scout” program, that involves covertly finding deal opportunities through its network. Alfred Lin, a partner in redwood, additionally created AN angel investment at the seed stage. He antecedently lamented that redwood unmarked Uber.

Sequoia declined to comment. Uber declined to comment.

For many Uber shareholders, the secondary providing can provide them the chance to show paper wealth into money. These embody current and former staff, venture capitalists and angel investors.

But they’re solely eligible to sell if they need a minimum of ten,000 shares. They additionally ought to be “accredited investors,” which suggests that Uber staff WHO create but $200,000 in regular payment will ought to have $1 million in assets (this includes the worth of the shares).

The $1 billion investment in Uber will facilitate the corporate still fuel its growth because it prepares to travel public in 2019.

This is an enormous moment for Uber, in what has otherwise been a really tough year. Uber has had infinite legal battles, as well as a patent proceedings with Alphabet’s self-driving automotive division.

There’s additionally been public outcry regarding its company culture. Co-founder and chief operating officer Travis Kalanick was pressured to step down in June.

If the deal is completed, capitalist and member Benchmark Capital plans to drop its proceedings against Kalanick. The suit is expounded to Kalanick’s power to appoint 3 board seats, as well as his own. Kalanick recently named Ursula Burns and John Thain to those seats. If one in all them provides up their spot, Kalanick would force a board vote to appoint a replacement, as long because the SoftBank deal is finalized.