SoftBank wants to pay 30% less for Uber stock than Uber's recent $69 billion valuation

Japan’s SoftBank is planning to buy stock in Uber from existing shareholders at a steep discount to the ride-hailing company’s current valuation, according to a Bloomberg report citing anonymous sources on Monday.

SoftBank’s offer will value Uber at $US48 billion, Bloomberg said, roughly 30% lower than the $US69 billion that investors valued the company at during previous fund-raising rounds.

The deal would allow SoftBank to purchase up to $US9 billion of Uber stock from existing shareholders in a tender offer. SoftBank also plans to invest $US1 billion directly in Uber, at the $US69 billion valuation. The official price of SoftBank’s tender offer is expected to be announced Tuesday.

The investment would mark the latest massive investment by SoftBank’s$US93 billion Vision Fund, and it would give SoftBank, led by the CEO Masayoshi Son, as much as a 17% stake in Uber.

With Uber’s initial public offering not expected to come before 2019, many early Uber investors are eager to cash in some of their shares in what has become the world’s most valuable privately held tech startup. But it’s not yet clear whether those investors will agree to sell their shares to SoftBank at the discounted price.

Uber and Softbank representatives declined to comment.

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