With the newest investment from China’s Hillhouse Capital Group, Uber just put a time constraint on its looming initial offering. By issuing debt to be convertible at a price below the initial offering, Uber has made it so that the longer it waits to start selling its stock, the more this foreign investment will cost the ride-sharing company. However, Hillhouse Capital Group is playing both sides with their investment in Uber seeing as how they also have a position in the Chinese based competitor ride-sharing app, Didi Kuaidi Joint Co. which could lead to a conflict of interest as Uber expands upon its UberChina plans. However this is not the first time that Uber, which is currently valued at over $40 billion, has issued convertible debt. In January, Uber issued convertible debt to a few select members of Goldman Sach’s wealth management group. In addition, Uber has also received funding from the world’s biggest venture capitol firms as well as India’s largest newspaper conglomerate. However, this most recent investment from Hillhouse Capital Group also pushes Uber’s entrance into China, which the company sees as its biggest future growth opportunity.
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