Today, Uber announced that it has comitted to an accelerated share repurchase agreement with Bank of America to repurchase $1.5 billion of shares of Uber common stock. Following today’s announcement, Uber shares have risen 3.97% in premarket trading.
The share buyback is part of a previously announced $7.0 billion share repurchase authorization by the company in 2024. Under the latest ASR agreement, Uber expects to repurchase 18,578,727 shares of Uber common stock, approximately 80% of the total shares it expects to repurchase.
Uber CFO Prashanth Mahendra-Rajah told investors, “We are entering 2025 with considerable momentum and expect to continue scaling our free cash flows significantly, enabling us to return meaningful capital to shareholders while still investing in growth,” Uber CFO Prashanth Mahendra-Rajah stated.
“Our stock is undervalued relative to the strength of our business, and we plan to accelerate our buybacks under the existing authorization as a result. This ASR represents a value-enhancing deployment of capital, retiring over one percent of our market cap.”
The ASR transactions are to be completed during the first quarter of 2025.
By CEO NA Editorial Staff
