Uber (NYSE:UBER) is seeing a boost to UBER stock on Monday following news it may be selling part of its business.
According to recent reports, Uber is looking to sell off its UberEats India business. These reports claim the ride-sharing and food delivery company will sell UberEats India to local competitor Zomato. This news comes from multiple anonymous sources.
If the rumors are true, Uber is planning to sell UberEats India to Zomato for $400 million. Neither Uber or Zomato have commented on the matter and the deal hasn’t been officially announced yet.
The sources claim that the deal between Uber and Zomato wouldn’t just stop with the sale of UberEats India. It would also have Uber making an investment in Zomato. Sources say this number would be between $150 million to $200 million, reports TechCrunch.
While the new about the possible sale of UberEats India is boosting UBER stock today, this isn’t the first time its been talked about. A recent from the Times of India first made mention of such a deal late last month. At the time, the asking price for UberEats India was reportedly sitting at $500 million.
If Uber and Zomato are looking to make a deal, rumors suggest it will have to happen sometime soon. The current talk is that the deal may reach its close by the end of the year. That doesn’t leave much time for an announcement as it’s already halfway through December.
UBER stock was up 5.69% as of Monday afternoon.
As of this writing, William White did not hold a position in any of the aforementioned securities.