<story><title>SoftBank Succeeds in Tender Offer for Large Stake in Uber</title><url>https://www.wsj.com/articles/softbank-succeeds-in-tender-offer-for-large-stake-in-uber-1514483283?mod=e2twd</url></story><parent_chain><item><author>robhunter</author><text>Are they not just buying common stock or Series Seed&amp;#x2F;A&amp;#x2F;B stock from existing investors?&lt;p&gt;I&amp;#x27;m under the impression this is a totally different class of stock than the $70B valuation round?&lt;p&gt;Common stock at a $49B valuation is entirely different from preferred stock at a $70B valuation with what I&amp;#x27;ll assume includes a lot of &amp;quot;fine print&amp;quot; around pro-rata and&amp;#x2F;or liquidation preferences.&lt;p&gt;Feels a little clickbait-y to say the valuation took a haircut when we&amp;#x27;re talking about different classes of stock.</text></item></parent_chain><comment><author>eddieplan9</author><text>This. It’s not uncommon to price the common shares differently in tender offers. Facebook did almost the same thing in 2009: DST bought preferred share at $10B valuation and then tender offer at 6.5B [1]&lt;p&gt;[1] &lt;a href=&quot;http:&amp;#x2F;&amp;#x2F;kara.allthingsd.com&amp;#x2F;20090713&amp;#x2F;facebookers-start-cashing-out-with-new-100-million-investment&amp;#x2F;&quot; rel=&quot;nofollow&quot;&gt;http:&amp;#x2F;&amp;#x2F;kara.allthingsd.com&amp;#x2F;20090713&amp;#x2F;facebookers-start-cashin...&lt;/a&gt;</text></comment>
<story><title>SoftBank Succeeds in Tender Offer for Large Stake in Uber</title><url>https://www.wsj.com/articles/softbank-succeeds-in-tender-offer-for-large-stake-in-uber-1514483283?mod=e2twd</url></story><parent_chain><item><author>robhunter</author><text>Are they not just buying common stock or Series Seed&amp;#x2F;A&amp;#x2F;B stock from existing investors?&lt;p&gt;I&amp;#x27;m under the impression this is a totally different class of stock than the $70B valuation round?&lt;p&gt;Common stock at a $49B valuation is entirely different from preferred stock at a $70B valuation with what I&amp;#x27;ll assume includes a lot of &amp;quot;fine print&amp;quot; around pro-rata and&amp;#x2F;or liquidation preferences.&lt;p&gt;Feels a little clickbait-y to say the valuation took a haircut when we&amp;#x27;re talking about different classes of stock.</text></item></parent_chain><comment><author>xyzzy_plugh</author><text>Indeed, they&amp;#x27;re investing at the 70B valuation &lt;i&gt;and&lt;/i&gt; buying existing shares through the tender offer, at a discount.&lt;p&gt;Given that the latter shares are being sold by existing stockholders, it doesn&amp;#x27;t seem fair to call this a down round.&lt;p&gt;I&amp;#x27;d expect their valuation to remain the same.</text></comment>