What does the SoftBank deal means for the Uber stock price? If someone would be getting an offer now, what would this article mean for equity https://techcrunch.com/2017/10/16/uber-softbank-deal-very-likely-to-be-finalized-in-the-next-week???
It’s typical to buy common for a discount to preferred
The discount has more to do with the leverage SoftBank has in the deal than with Uber’s fundamentals. No other investor besides SoftBank would be able to get such a discount. Softbank’s deal was basically “either you sell to me for less than you’re worth or I’ll put money into your competitors and create conditions that depress your valuation for real”.
It’s a technical flat round in name only