Calling Uber a Silicon Valley unicorn is passé. Uber is a $62.5 billion monster that’s threatening to take down a nervous tech market. The latest news is that Uber last week accepted a $3.5 billion investment from the Saudi sovereign wealth fund.
That means Uber now has $11 billion to fuel its growth. But what’s conspicuously lacking from that assumed growth is some type of exit strategy for Uber’s earlier investors.
Will there ever be an IPO? Not anytime soon, if CEO Travis Kalanick has his way.
There is another option of course: acquisition. Conservatively, Uber’s acquisition value would be something like $80 billion. That’s a big bite. Tesla has a market cap of about $30 billion. General Motors is $46 billion. Ford is $52 billion. None of those companies, nor many others, have enough cash to acquire Uber outright.
But one company that does is Apple.
- Apple has enough cash to buy Uber – still….