Microsoft Reportedly Set To Invest In Uber
There is growing speculation that software giant Microsoft Corporation has agreed to make a huge investment in ride-sharing company Uber Technologies Inc., Bloomberg reported. According to a Bloomberg source who refused to be identified, a deal was finalized last Friday. The said investment is reported to be around $100 million.
According to an earlier report by The New York Times, Microsoft’s sizable investment is actually part of a fresh round of funding amounting to about $1 billion that will see Uber’s value go up to as much as an estimate of $51 billion. However, much of the details are being kept under wraps.
Nonetheless, Uber spokeswoman Kristin Carvell told Bloomberg, “We filed to authorize this new funding more than two months ago. The filing is available to the public. We aren’t commenting on additional speculation.”
Meanwhile, Microsoft spokesman Tony Imperati has reportedly declined to comment.
With the latest round of funding, Uber is reportedly keen to expand its business in new markets including China and greater Southeast Asia. Furthermore, an Uber representative has also told The New York Times that the ride-sharing company had set aside as much as $1 billion to grow its business in India where competition is tight.
According to data obtained by CNN Money from private company financial intelligence provider PrivCo, Uber’s value has actually increased by an astounding $10 billion just in seven months. In fact, the ride sharing company managed to raise $1.8 billion at a $40 billion valuation just last December.
This means that it had only taken Uber an impressive five years to reach a $50 billion valuation. Just to give you a perspective, it took social media giant Facebook almost seven years to reach the same valuation.
Aside from Microsoft Corporation, CNN Money has also learned that investors for Uber’s new round of funding also includes Bennett Coleman & Co, a member of The Times Group, a large media conglomerate in India. Moreover, PrivCo says these companies are supposed to be new investors or newly disclosed investors of Uber.
Meanwhile, this would not be the first time that Microsoft and Uber had done business together. Just recently, The New York Times reports Uber had acquired a part of Microsoft’s “mapping-technology assets” and even extended some employment offers to over 100 Microsoft employees.
As of the moment, neither Microsoft nor Uber has gone on the record about the said investment.