Uber Technologies could hold an IPO in 2019. The company has been valued at $120bn by Goldman Sachs and Morgan Stanley, which is the double of current valuation and exceeds the value of General Motors, Ford Motor and Fiat Chrysler Automobiles combined, according to the Wall Street Journal citing unnamed sources.
In one of the biggest deals in the Russian tech sector in 2017, Uber and Yandex.Taxi of internet services major Yandex formed a joined venture in Russia and five other countries (Armenia, Azerbaijan, Belarus, Georgia and Kazakhstan).
The sides said they will invest $225mn and $100mn in the new company, respectively, giving it an estimated $3.8bn valuation and possibly seeking an IPO of the business in 2019. Yandex currently holds a 59.3% stake and Uber's 36.9% in the joint venture, with the remainder held by employees.
The Uber Technologies IPO and record-high valuation is a "positive signal for Yandex.Taxi", BCS Global Markets commented on October 17, noting that the price of Uber's IPO could serve as a future benchmark for Yandex.Taxi valuation.
Even the current $70bn valuation of Uber would imply a 30% premium for the Yandex-Uber deal in Russia, BCS writes. Russia's Yandex.Taxi to benefit from high Uber IPO valuation