Uber Finally Seals $9 Billion Deal With SoftBank And Others

Uber's former CEO said to cash in at $1.4B in Softbank deal

Uber's former CEO said to cash in at $1.4B in Softbank deal

"We are very pleased to have successfully closed the Uber investment and appreciate the support and professionalism of the Board, management team and shareholders who made this transaction possible".

Travis Kalanick is a man who presided over a rampant culture of sexism, the covering up of a major hack, spying on journalists and, allegedly, the theft of trade secrets from Google.

Softbank has significant stakes (paywall) in some of the world's largest ride-hailing companies including Uber rivals like India's Ola and China's Didi so it is perhaps unsurprising that it might want the California-based company to focus on core markets where it doesn't compete with its other investments. A primary investment of $1.25 billion closed on Thursday, according to Uber, and payments for secondary sales will be processed by the Nasdaq Private Market and disbursed to participants throughout the day. According to the Wall Street Journal's reporting from late December 2017, this tender offer deal valued the company at roughly $48 billion. The blended valuation is $54 billion.

Benchmark, the venture firm that largely drove the campaign to clean up Uber's executive leadership in 2016, reportedly planned to sell $900 million in Uber stock - about 14.5 percent of its holdings - in the deal. "I look forward to SoftBank helping Uber become an even bigger global success".

The deal between Uber and its investors brings some notable changes. While Softbank is buying a 15 percent stake, other investors will buy another 5 percent stake, in accordance with the deal.

According to Bloomberg, the terms of the deal expand Uber's board to 17 seats. It is now part of a wider SoftBank network ranging from Sprint to WeWork. Kalanick was ousted from Uber in June and former Expedia CEO Dara Khosrowshahi took over in August. There's no change to Khosrowshahi's target of 2019 for an initial public offering.

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