Uber shares drop as Softbank plans to sell shares to cover Didi losses


Uber CEO Dara Khosrowshahi speaks at a product launch event in San Francisco, California on September 26, 2019.

Philip Pacheco | AFP via Getty Images

SoftBank is selling about one-third of its stake in ride-hailing company Uber to cover losses on its investment in Chinese ride-hailing company Didi, two people familiar with the matter told CNBC. It’s planning to sell 45 million shares, which will have a 30-day lockup.

Uber shares fell 5% in extended trading following the report.

The value of Uber’s own Didi stake declined $2 billion last week following the June debut of Didi’s American depositary shares on the New York Stock Exchange, as China reportedly planned fines and other punishments against the company amidst a broader crackdown on U.S. listed Chinese companies.

SoftBank has lost about $4 billion on its Didi position in total, CNBC’s Deirdre Bosa reported.

This is breaking news. Please check back for updates.

Leave a Reply

Your email address will not be published.