Uber's third-quarter loss grows $1.46bn

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Uber has given its shareholders an update on the company's performance and it's definitely in the red.

The San Francisco-based company's net loss increased to $1.46 billion in the third quarter from $1.06 billion in the previous quarter. Quarterly gross bookings were $9.7 billion.

The numbers were first reported by Bloomberg and a TechCrunch source confirmed.

Another source stated that SoftBank is also planning to directly invest $1 billion in Uber at the $68.5 billion valuation on the condition that it will acquire 13.4 percent of the ride-services group's shares through the tender. The remaining bidders in the group are SoftBank, Dragoneer Investment Group, TPG, Tencent Holdings Ltd. and Sequoia Capital, which are looking to buy at least 13.4 percent of outstanding shares, said two people.

The tender offer started on Tuesday and investors will have about 20 business days to choose whether they want to sell their shares or wait for a potential public offering (IPO) in 2019 instead.

SoftBank has already confirmed that existing shareholders Benchmark Capital and Menlo Ventures intend to sell shares.

The investor group, which hopes to snap up Uber shares on the cheap, offered to pay $32.97 a share in their opening salvo, said people with knowledge of the matter. That's according to Softbank's offer to buy shares of the ride-sharing company at a 30 percent discount. They also need to be "accredited", meaning they have $1 million in assets or make $200,000 per year. Consequentially, the deal would value at $48 billion, a massive step-down from its $70 billion private valuation. Ultimately, Uber CEO Dara Khosrowshahi needs this deal to get done because it's tied to governance changes, says Primack. Benchmark Capital will also be dropping its lawsuit against former Uber CEO, Travis Kalanick, which related to board appointments.



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