Merge is such a cute word. "Uber lost China and had to sell to Didi" is more like it
"Investors in Uber China, an entity owned by San Francisco-based Uber, Baidu Inc. and others, will receive a 20 percent stake in Didi, the people said. "
Does that $2bn 'investment' figure include the $1bn/year losses they were incurring competing with Didi? Uber ploughed in more than $2bn into China, and got less than $7bn (as sibling comment says, the $7bn is not all going to Uber).
I agree on the second point - the value of whatever percentage Uber owns is likely to go up.