Uber & Softbank Deal Lower Uber Valuation?
Softbank bought 15% of Uber stocks with a 30% discount off on its 68 billion valuation. Will this lower Uber's valuation? My friend is joining Uber soon, but a 30% drop in her RSU is definitely something that worries her. Should she ask for stocks before her starts?
Again with the friend
Softbank took advantage of FUD and employees need for liquidity, got a smokin deal and employees got hosed
Does not lower valuation. It was a tender offer. Means employees could cash out at a lower price instead of waiting for IPO. Your friend will be happy with 7k of Rsu.
Does your friend work at yelp š. The valuation had not changed. The discount was on a secondary sale not from the company and Softbanks direct investment will be at 68b. That said Uber is a private company so until it goes public no one knows the valuation for sure despite any venture investment. This is the simplest way I can put it I think.
7k RSU for Eng 2?
No harm in negotiating an offer. SoftBank is placing a big bet on Uber by buying in "bulk". A bulk discount in a closed market or when dealing directly with the seller is not unheard of. We will know Uber's real valuation when it goes IPO to an open market where there are multiple buyers. Until then as an outsider you can guess it's current valuation is between $48B and $70B. Insiders with knowledge of it's opportunities and risk, will evaluate it at $70B or closer.
If your friend already accepted the offer, there is no recourse. If your friend is considering a counter offer, Iād suggest not basing the reasoning on āthis deal thatās been in the news for months, but just got executed.ā Double-guessing oneself isnāt a great way to start a job. If 7k rsuās felt fair before, itās fair now. Weāre relatively late stage at this point, literally preparing for the IPO, relatively little risk value conveyed in the grants. But 7k rsuās is still nothing to sneeze at. Softbank expects a substantial return on investment by IPO. Take the sale price, multiply it by 7000 divided by 4 (years), then guess a multiplier you think Softbank is expecting to be reasonable. Is that a nice annual stock comp?
They also additionally invested $1b at 68b valuation. As a result, technically the valuation has not changed. On the other hand your friend is always free to ask.
Thanks for the information. She just declined other offers for Uber but the deal made her feel she was stupid. I will suggest her to talk to her manager. I heard that Uber has a hiring committed now?