Uber recently has had more drama than a Greek play. And with a $70 billion valuation, Uber has also become a Greek God, holding the aspirations of many: venture capitalists, angels, sovereign funds, and others. Many still question the valuation of Uber’s asset-like, toll-taking business model, but there’s at least one solid fact.
Last year, Uber did something right by leaving the money losing Chinese market. As part of its deal to exit China, Uber swapped its China operations for a piece of its competitor, Didi Chuxing. Uber’s eighteen percent of Didi has two benefits. First, if Uber loses to Didi it’s still a win for investors as the value of Uber increases. Secondly, the Didi investment explains a small part of Uber’s $70 billion valuation.
Is Apple’s Didi investment actually more than $1 Billion? Today, Apple’s 8-K discloses “strategic investments” of $1.376 billion*. That amount is $376 million more than Apple’s previously announced Didi investment, also referred to as “strategic” by Tim Cook.
How did Apple spend $1.376 billion in strategic investments? Tim Cook also said, “we have been buying companies, on average, every three to four weeks or so.” Here Tim Cook is referring to purchasing rather than investing in companies, so it can’t be that.
Apple’s $1.376 billion strategic investments, beside Didi, could be related to AR. Tim Cook said today… It (Pokemon Go) also does show that AR can be really great. We have been and continue to invest a lot in this.” More should be known once Apple’s 10-K is released.
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*See Statement of Cash Flows for the Nine Months Ended June 25, 2016.