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How Rahm Emanuel profits from brother Ari’s Uber payday
By William Kelly, Communities Digital New
CHICAGO, August 25, 2014 — WME CEO Ari Emanuel stands to make a billion dollars or more from his Hollywood agency’s investment in Uber, experts say. With his brother, Mayor Rahm Emanuel’s direct involvement in passing Uber-friendly ride-share legislation in Chicago and the resulting impact on the company’s valuation, the mega dollar amount deserves serious scrutiny from the media, not a pass.
Back in April, when Rahmbo was questioned over the conflict-of-interest questions raised by his brother’s stake in Uber, he was undeniably testy:
“He [Ari] would benefit before there was regulation. Now we’re putting regulations in to make sure there’s a level playing field and not advantaged against regulated industry. Just the opposite. Let me say this about Ari: He doesn’t need his older brother to get rich. Think of it as me getting back at him! Okay?” Emanuel told WLS political reporter Bill Cameron at the time.
When questioned, a WME spokesman confirmed the agency’s stake in Uber but would not confirm the size of the investment.
So how much money is really involved here?
A source who has seen Uber’s offering says that WME’s early investment was probably in the $5-$10 million range. In initial investor rounds, companies like Uber raise in tranches of $5-10 million or multiples thereof. According to public sources, Ari Emanuel’s investment was made during Uber’s second investment round in December 2011, which was three months after the company began its Chicago operations and ten months after Rahm was elected Mayor of Chicago.
At the time, Uber was valued at $300 million.
But just days after favorable ride-share legislation was passed by the Chicago City Council in May, the company announced a $1.2 billion raise from institutional investors like Fidelity and a stunning $18.2 billion valuation. The valuation was based only on top line revenue.
As an early investor, the value of WME’s asset is now approximately 60x its original investment. Once Uber goes public, WME’s investment could be as much as 100x its original investment and or more, sources say.
That makes WME’s current investment in Uber worth, at minimum, between $300 million and $600 million. At 100x its original value, WME’s investment could be worth as much as $1 billion or more.
According to Fortune, investors in Uber’s first round “saw their investments grow to between 400x and 600x in that round that valued Uber at $3.5 billion. At $17 billion, they’re worth 2,000X.”
So did the prospect of his brother’s billion dollar Uber payday improperly influence Mayor Rahm Emanuel?
By William Kelly, Communities Digital New
CHICAGO, August 25, 2014 — WME CEO Ari Emanuel stands to make a billion dollars or more from his Hollywood agency’s investment in Uber, experts say. With his brother, Mayor Rahm Emanuel’s direct involvement in passing Uber-friendly ride-share legislation in Chicago and the resulting impact on the company’s valuation, the mega dollar amount deserves serious scrutiny from the media, not a pass.
Back in April, when Rahmbo was questioned over the conflict-of-interest questions raised by his brother’s stake in Uber, he was undeniably testy:
“He [Ari] would benefit before there was regulation. Now we’re putting regulations in to make sure there’s a level playing field and not advantaged against regulated industry. Just the opposite. Let me say this about Ari: He doesn’t need his older brother to get rich. Think of it as me getting back at him! Okay?” Emanuel told WLS political reporter Bill Cameron at the time.
When questioned, a WME spokesman confirmed the agency’s stake in Uber but would not confirm the size of the investment.
So how much money is really involved here?
A source who has seen Uber’s offering says that WME’s early investment was probably in the $5-$10 million range. In initial investor rounds, companies like Uber raise in tranches of $5-10 million or multiples thereof. According to public sources, Ari Emanuel’s investment was made during Uber’s second investment round in December 2011, which was three months after the company began its Chicago operations and ten months after Rahm was elected Mayor of Chicago.
At the time, Uber was valued at $300 million.
But just days after favorable ride-share legislation was passed by the Chicago City Council in May, the company announced a $1.2 billion raise from institutional investors like Fidelity and a stunning $18.2 billion valuation. The valuation was based only on top line revenue.
As an early investor, the value of WME’s asset is now approximately 60x its original investment. Once Uber goes public, WME’s investment could be as much as 100x its original investment and or more, sources say.
That makes WME’s current investment in Uber worth, at minimum, between $300 million and $600 million. At 100x its original value, WME’s investment could be worth as much as $1 billion or more.
According to Fortune, investors in Uber’s first round “saw their investments grow to between 400x and 600x in that round that valued Uber at $3.5 billion. At $17 billion, they’re worth 2,000X.”
So did the prospect of his brother’s billion dollar Uber payday improperly influence Mayor Rahm Emanuel?
