Uber and Didi Chuxing Will Combine As A $35B Company

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Uber and Didi Chuxing, the Chinese ride-hailing service, both announced on Monday that Didi Chuxing would be acquiring Uber’s China business. The deal, according to a source familiar with the matter, would value the combined company at $35 billion. This valuation is made up of Didi’s most recent $28 billion valuation and $7 billion value for Uber China.

In the deal, Uber global will receive 5.89 percent in the combined company with “preferred equity interest” which is equal to a 17.7 percent stake. Baidu and Uber’s other Chinese shareholders will receive a 2.3 percent stake in Didi Chuxing, for a combined total stake in the company at 20 percent.

Under the agreement, Uber China will keep its independent branding and business operations.

Didi has said that the start-up’s founder and, Chairman Cheng Wei, will join the board of Uber and that Travis Kalanick, Uber Chief Executive, will join the board of Didi.

“Didi Chuxing will also continue to expand its international strategy. We look forward to working with our partners at home and abroad to create more value for drivers, passengers and communities,” Jean Liu, president of Didi Chuxing said in a statement on Monday.