Why SoftBank is Seeking a Discount for Uber Stock

Why SoftBank is Seeking a Discount for Uber Stock

Assessment

Interactive Video

Business

University

Hard

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The transcript discusses SoftBank's dual investment strategy in Uber, involving a direct investment at a higher valuation and purchasing shares from existing shareholders at a discount. This approach considers Uber's recent controversies and aims to stabilize its market value. SoftBank hopes to mitigate further negative impacts from ongoing issues. The process involves a roadshow to persuade current investors, including early employees, to sell their shares, providing them with liquidity.

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5 questions

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1.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What are the two tracks of SoftBank's investment in Uber?

Issuing bonds and buying existing shares

Direct investment and buying new shares

Buying new shares and issuing bonds

Direct investment and buying existing shares

2.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is one of the controversies that Uber faced, impacting SoftBank's investment?

A recent undisclosed hack

A lawsuit from a competitor

A failed merger with another company

A drop in market share

3.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

What is SoftBank hoping to achieve with their investment in Uber?

To acquire Uber completely

To set a valuation floor amidst controversies

To increase Uber's market share

To establish a new partnership

4.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Who are the potential sellers in SoftBank's share purchase process?

Existing Uber shareholders

Government regulators

New investors

Competitors

5.

MULTIPLE CHOICE QUESTION

30 sec • 1 pt

Why might early employees be interested in selling their shares to SoftBank?

To receive a higher salary

To invest in a new startup

To gain liquidity for their stock

To avoid company controversies