Uber Technologies Inc. to be acquired by Spotify

Spotify to acquire Uber Technologies Inc. in a stock deal valued at $45 billion

Deal expected to close in the first quarter of 2023

Uber Technologies Inc. (NYSE: UBER) and Spotify Technology S.A. (NYSE: SPOT) today announced that they have entered into a definitive agreement under which Spotify will acquire Uber in a stock transaction valued at approximately $45 billion. The transaction is expected to close in the first quarter of 2023, subject to customary closing conditions, including regulatory approvals.

Under the terms of the agreement, Uber shareholders will receive 0.543 Spotify shares for each Uber share they own. Upon closing of the transaction, Spotify shareholders will own approximately 66% of the combined company, and Uber shareholders will own approximately 34%. The combined company will be led by Spotify CEO Daniel Ek.

The acquisition of Uber will give Spotify access to Uber's large user base and its valuable data on user mobility. This data will allow Spotify to improve its music recommendations and create new personalized experiences for its users. Uber will also benefit from Spotify's global reach and its expertise in music and entertainment.

The deal is a major coup for Spotify, which has been looking to expand its business beyond music streaming. Uber is one of the world's leading ride-hailing companies, with operations in over 70 countries. The acquisition will give Spotify access to a new market and a new source of revenue.

For Uber, the deal is a way to exit the public markets and focus on its core business. Uber has been struggling to turn a profit since its IPO in 2019. The deal will give Uber a much-needed cash infusion and allow it to focus on its long-term growth strategy.

The acquisition is expected to close in the first quarter of 2023. The combined company will be a global leader in the music and entertainment industry, with a user base of over 400 million people.