{"id":59,"date":"2017-12-24T08:45:33","date_gmt":"2017-12-24T08:45:33","guid":{"rendered":"https:\/\/cryptorepublic.app\/?p=59"},"modified":"2017-12-24T08:45:33","modified_gmt":"2017-12-24T08:45:33","slug":"mutual-funds-cut-uber-valuation-by-as-much-as-15","status":"publish","type":"post","link":"https:\/\/cryptorepublic.app\/?p=59","title":{"rendered":"Mutual Funds Cut Uber Valuation by as Much as 15%"},"content":{"rendered":"<div class=\"wpb-content-wrapper\"><p>[vc_row][vc_column][tm_heading tag=\u00bbh5&#8243; custom_google_font=\u00bb\u00bb font_weight=\u00bb600&#8243; text=\u00bbThe Wall Street Journal reported that Vanguard, Principal, and Hartford Funds cut the value of their shares by 15% as of June 30. T. Rowe Price lowered its Uber share price by 12%. Fidelity maintained its price and peculiarly, Blackrock increased its price to $53.88.\u00bb line_height=\u00bb1.4&#8243;][tm_spacer size=\u00bblg:25&#8243;][tm_heading tag=\u00bbdiv\u00bb custom_google_font=\u00bb\u00bb text=\u00bbSome major investors are finally feeling compelled to apply the scratch and dent markdown to Uber shares. Seven mutual funds own Uber shares, and more than half cut their price from the $48.77 per share price at which they\u2019d held them since the fourth quarter of 2015, the last time Uber raised money.\u00bb][tm_spacer size=\u00bblg:63&#8243;][vc_row_inner][vc_column_inner width=\u00bb3\/12&#8243;][tm_image image=\u00bb875&#8243;][tm_spacer size=\u00bbsm:30&#8243;][\/vc_column_inner][vc_column_inner width=\u00bb9\/12&#8243;][tm_heading tag=\u00bbh5&#8243; custom_google_font=\u00bb\u00bb font_weight=\u00bb600&#8243; text=\u00bbUse psychological pricing methods.\u00bb line_height=\u00bb1.4&#8243;][tm_spacer size=\u00bblg:23&#8243;][tm_heading tag=\u00bbdiv\u00bb custom_google_font=\u00bb\u00bb text=\u00bbHaving high profile investors repudiate the valuations that venture capitalists are touting is proof that the myth of Uber\u2019s inevitable dominance of the ride sharing business, and that that would someone lead to ginormous profits is finally getting long-overdue scrutiny. Mind you, these investors can afford to cut their valuations because they got at lower prices, some at $15.51 a share.\u00bb][tm_spacer size=\u00bbxs:30;lg:35&#8243;][tm_heading tag=\u00bbdiv\u00bb custom_google_font=\u00bb\u00bb text=\u00bbNeedless to say, the fact that sophisticated investors are already haircutting Uber\u2019s shares is going to put a dent in its fundraising efforts. The Journal repeated the Uber party line about its fundraising effort with SoftBank.<br \/>\nA negotiation of what is a simple sale of existing shares (as in the terms are already set) does not take months to negotiate. The longer talks like this go on, the less likely anything is to get done in the absence of a big development.\u00bb][\/vc_column_inner][\/vc_row_inner][tm_spacer size=\u00bbxs:30;lg:52&#8243;][tm_heading tag=\u00bbdiv\u00bb custom_google_font=\u00bb\u00bb text=\u00bbYet other outlets that picked up on the story that Bloomberg broke on July 25 took up Uber\u2019s spin, with no evidence of any input from SoftBank to justify the pro-Uber hype. The Journal\u2019s account, following close on the heels of the Bloomberg story, and based on only US sources, was headlined SoftBank Seeks Multibillion-Dollar Stake in Uber.\u00bb][tm_spacer size=\u00bbxs:30;lg:68&#8243;][vc_row_inner][vc_column_inner offset=\u00bbvc_col-md-6&#8243;][tm_heading tag=\u00bbh5&#8243; custom_google_font=\u00bb\u00bb font_weight=\u00bb600&#8243; text=\u00bbDemonstrate the differences\u00bb line_height=\u00bb1.4&#8243;][tm_spacer size=\u00bblg:23&#8243;][tm_heading tag=\u00bbdiv\u00bb custom_google_font=\u00bb\u00bb text=\u00bbOn August 7, the Journal headline was, \u201cSoftBank Chief Says He Wants Stake in Uber or Lyft.\u201d And what did CEO Masayoshi Son say at a press conference? \u201c\u201cWe are interested in discussing with Uber. We are also interested in discussing with Lyft.\u201d That is not the normal Japanese locution for negotiations that are underway. That is basically saying SoftBank was prepared to receive an approach.\u00bb][tm_spacer size=\u00bbsm:30;lg:68&#8243;][tm_heading tag=\u00bbh5&#8243; custom_google_font=\u00bb\u00bb font_weight=\u00bb600&#8243; text=\u00bbOffer a money-back guarantee\u00bb line_height=\u00bb1.4&#8243;][tm_spacer size=\u00bblg:23&#8243;][tm_heading tag=\u00bbdiv\u00bb custom_google_font=\u00bb\u00bb text=\u00bbMoreover, Son said his interest is self-driving car technology. If he or his due-diligence team were to take a hard look, they would presumably figure out that Google is suing Uber for stealing its key self-driving car technology, and without that, Uber doesn\u2019t have much of value here.\u00bb][tm_spacer size=\u00bbsm:30;lg:68&#8243;][tm_heading tag=\u00bbh5&#8243; custom_google_font=\u00bb\u00bb font_weight=\u00bb600&#8243; text=\u00bbTest your offer and price, and be creative.\u00bb line_height=\u00bb1.4&#8243;][tm_spacer size=\u00bblg:23&#8243;][tm_heading tag=\u00bbdiv\u00bb custom_google_font=\u00bb\u00bb text=\u00bbSince then, the reports from the Uber side as to where SoftBank stands have kept shifting, to the degree that it looks like Benchmark and its allies can\u2019t keep their story straight. On August 14, the New York Times reported that Uber was taking the \u201cnext step\u201d to \u201cmove forward\u201d with a supposed proposal from SoftBank to invest in Uber. \u00ab][\/vc_column_inner][vc_column_inner offset=\u00bbvc_col-md-6&#8243;][tm_spacer size=\u00bbsm:40&#8243;][tm_image full_wide=\u00bb1&#8243; image=\u00bb876\u00bb][\/vc_column_inner][\/vc_row_inner][\/vc_column][\/vc_row]<\/p>\n<\/div>","protected":false},"excerpt":{"rendered":"<p>Since then, the reports from the Uber side as to where SoftBank stands have kept shifting, and its allies can\u2019t keep their story straight. <\/p>\n","protected":false},"author":1,"featured_media":44,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[26,28],"class_list":["post-59","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-franchising","tag-classic","tag-industry"],"views":204,"_links":{"self":[{"href":"https:\/\/cryptorepublic.app\/index.php?rest_route=\/wp\/v2\/posts\/59","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cryptorepublic.app\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cryptorepublic.app\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cryptorepublic.app\/index.php?rest_route=\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/cryptorepublic.app\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=59"}],"version-history":[{"count":0,"href":"https:\/\/cryptorepublic.app\/index.php?rest_route=\/wp\/v2\/posts\/59\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/cryptorepublic.app\/index.php?rest_route=\/wp\/v2\/media\/44"}],"wp:attachment":[{"href":"https:\/\/cryptorepublic.app\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=59"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cryptorepublic.app\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=59"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cryptorepublic.app\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=59"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}