Uber Update: $50 Billion-Plus Valuation?

An Uber IPO could place the value of the transportation start-up at north of $50 billion dollars making it the most valuable pre-listed IPO in history!

Prior to the expected Uber deal hitting the market, Facebook was the most recent valuation record-holder at a $50 billion number pre-IPO in 2011.

One glaring difference and potential concern for those who watch markets, however, could be that prior to its IPO Facebook had delivered a profit of $600 million in 2010 while to-date Uber…Unprofitable!

Uber-high Valuation!

From MarketWatch.com, Uber Technologies Inc., the world’s most highly capitalized startup, plans to raise another large round of funding.

The San Francisco-based ride-sharing company briefed investors on its plans to raise between $1.5 billion and $2 billion in new funding, said people familiar with the matter. It expects the funding to value the company at $50 billion or higher, the people said, although they said Uber’s plans could change.

At that level, Uber could become the most valuable venture-backed startup in history. Only Facebook Inc. FB, +0.11% attained a $50 billion valuation before going public. Goldman Sachs Group arranged a private offering of shares of the social network at that valuation in 2011.

Uber’s valuation could rise as it meets with investors, the people said. A May 2014 funding round began with discussions of a roughly $10 billion valuation and closed at an $18 billion valuation. A round in December 2014 began at around $30 billion and closed at $41 billion.

The Uber Impact

A few weeks ago in an article here the impact that Uber was having on NYC taxi medallion prices and the drivers themselves was discussed!

Update: Uber Driving Medallion Taxis Underwater!

‘Several weeks ago an article titled, ‘Because Of Uber, Are Taxi Medallion Lenders A Shorting Opportunity?‘ examined the painful impact that Uber is having on the taxi medallion financing industry!

Not to mention the pain being caused due to a loss in the ability of the drivers who lease the taxis from the owners to make a living and on the owners themselves who at the same time are potentially trying to pay off a loan used to finance the taxi medallion.

This loss of earnings power has in turn caused the secondary market price of the limited issue medallions to plummet affecting the collateral of the lenders.

One reason for the drop in the medallions value is the classic economic theory of supply and demand while the other is the number of medallions that are being foreclosed due to the lack of loan payments being made.’

________________________________________________________________

Michael Haltman, President of Hallmark Abstract Service, New York.

HAS is a provider of title insurance in New York State for residential and commercial real estate transactions.

And, for anyone either buying a property or refinancing, remember that although your attorney will likely recommend a title insurance provider you always have the right to choose your own (click here to learn more)!

If you have any questions you can reach Michael by email at mhaltman@hallmarkabstractllc.com.

One thought on “Uber Update: $50 Billion-Plus Valuation?

  1. Pingback: Upcoming Tech IPOs in 2015 - Binary Option Evolution

Leave a Reply

Your email address will not be published. Required fields are marked *