Japanese telecoms giant SoftBank is jumping on board Uber (in a big way)
Posted: Tue Jan 07, 2025 7:24 am
SoftBank 's multi-million dollar investment in ride-hailing network Uber has been greenlit . The board of directors of the US startup reached an agreement on Sunday that will allow the Japanese telecommunications giant to join the company.
The deal, which has not yet been finalized, provides for SoftBank and other investors to inject $1 billion into Uber . In addition, a consortium led by the Japanese company will buy shares in the company worth $9 billion from current Uber investors . If the operation is finally completed, it would be one of the largest investments in the Californian startup's history.
To pave the way for SoftBank's entry into Uber, the company has had to approve changes to its corporate governance . Travis Kalanick, Uber's former CEO, and one of the largest shareholders of the American company, Benchmark, reached an agreement on Sunday that limits Kalanick's power on the company's board of directors.
In exchange, Benchmark has agreed to drop the lawsuit it had previously filed ukraine phone number against the Uber co-founder. The venture capital group actively fought to force Kalanick out of Uber as CEO. And not content with removing Kalanick from the company's leadership, it sued to remove him from the company's board as well.
Benchmark, whose stake in Uber is worth $8 billion, has agreed to drop its lawsuit against Kalanick if the startup signs the investment deal with SoftBank.
"We believe this deal is a strong vote of confidence in Uber's long-term potential . It will fuel our investments in technology and our continued expansion at home and abroad, while strengthening our corporate governance," Uber said in a statement.
The ball is now in SoftBank's court, which aims to acquire 14% of Uber's capital and could break the deal if it fails to buy the number of shares it initially had in mind.
The deal, which has not yet been finalized, provides for SoftBank and other investors to inject $1 billion into Uber . In addition, a consortium led by the Japanese company will buy shares in the company worth $9 billion from current Uber investors . If the operation is finally completed, it would be one of the largest investments in the Californian startup's history.
To pave the way for SoftBank's entry into Uber, the company has had to approve changes to its corporate governance . Travis Kalanick, Uber's former CEO, and one of the largest shareholders of the American company, Benchmark, reached an agreement on Sunday that limits Kalanick's power on the company's board of directors.
In exchange, Benchmark has agreed to drop the lawsuit it had previously filed ukraine phone number against the Uber co-founder. The venture capital group actively fought to force Kalanick out of Uber as CEO. And not content with removing Kalanick from the company's leadership, it sued to remove him from the company's board as well.
Benchmark, whose stake in Uber is worth $8 billion, has agreed to drop its lawsuit against Kalanick if the startup signs the investment deal with SoftBank.
"We believe this deal is a strong vote of confidence in Uber's long-term potential . It will fuel our investments in technology and our continued expansion at home and abroad, while strengthening our corporate governance," Uber said in a statement.
The ball is now in SoftBank's court, which aims to acquire 14% of Uber's capital and could break the deal if it fails to buy the number of shares it initially had in mind.