TOKYO – The Japanese telecommunications giant Softbank confirmed on Tuesday that it has only reached an initial agreement with US transportation company Uber, which is not finalized yet, noting that the deal’s success will depend on the price and percentage of shares.
“The Uber board and its shareholders, as well as the SoftBank Group side, have come to a basic agreement on a process for the SoftBank Group to make a future investment in Uber. However, while the SoftBank Group side is considering an investment in Uber, there is no final agreement at this stage,” the Japanese company said in a statement.
A spokesperson for Uber announced the agreement with Softbank on Sunday and explained that this investment is aimed at funding new technology developments for the platform to boost its global expansion.
The investment could reach $10 billion, according to various financial sources.
“If conditions on share price and a minimum of shares are not satisfactory for the SoftBank Group side, there is a possibility the SoftBank Group may not make an investment,” Softbank said in the statement Tuesday.
Shares of Softbank fell 0.68 percent on the Tokyo Stock Exchange at 10:00 am local time (0100 GMT), after ending Monday with a slight decline of 0.29 percent.
Although one of the most successful projects in Silicon Valley, Uber has been rocked by a series of scandals since the beginning of the year, including a lawsuit from Alphabet, Google’s parent company, for allegedly stealing information about its autonomous vehicles.
Uber’s board of directors would have given the green light for the investment to Softbank and Dragoneer Group in exchange for granting the Japanese giant a fraction of the company’s shares, according to US media.
The agreement between the two companies could also include an initial public offering by Uber in 2019.
The CEO of Softbank, Masayoshi Son, has on several occasions admitted his company’s interest in partnering with Uber, which is in line with the company’s investments in other start-ups that offer transport services such as China’s Didi Chuxing Technology, India’s Wave or Singapore’s Grab.