Uber Launches $1.5 Billion Accelerated Share Repurchase Program
Uber Technologies, Inc. has exciting news to share with investors! They just announced a major move to repurchase $1.5 billion worth of shares of Uber common stock through an accelerated share repurchase (ASR) program. This is all part of their larger $7.0 billion share repurchase plan.
If you’re wondering why Uber is making this move, Prashanth Mahendra-Rajah, a representative from the company, mentioned that they are feeling strong heading into 2025. They expect to see significant growth in their free cash flow, allowing them to give back to shareholders while still investing in their continued expansion. According to Mahendra-Rajah, Uber’s stock is undervalued compared to the company’s performance, so they plan to ramp up their buyback activity to boost shareholder value even more.
Here’s how it works: Uber will be working with Bank of America, N.A. to make this happen. On January 6, 2025, they will pay $1.5 billion to the dealer and will receive an initial batch of about 18.6 million shares of Uber common stock. This represents roughly 80% of the total shares they plan to repurchase through this ASR agreement. The final number of shares bought back will depend on the average stock price on specific dates during the program, with some adjustments and a discount factored in.
The good news is that all these transactions are expected to wrap up by the end of the first quarter of 2025. It’s a big move for Uber, and they’re looking forward to seeing the positive impact it will have on their business and investors.
In case you’re curious, this press release from Uber also had some forward-looking statements about their future expectations. They highlighted potential risks and uncertainties involved in this share repurchase program and reminded readers that actual results can vary from predictions.
A little bit about Uber, for those who might not be familiar: their mission is all about creating opportunities through movement. Starting back in 2010 with a simple idea of getting a ride at the tap of a button, Uber has grown to facilitate over 55 billion trips. Their goal is to connect people with where they want to go by revolutionizing how things move around cities.
For more information, investors can reach out to investor@uber.com, while media inquiries can be directed to press@uber.com. It’s always exciting to see major players like Uber making bold moves in the market, and this share repurchase program is just another example of their commitment to growth and value for their stakeholders.
