Things were off to a rocky start for Uber this year as it just couldn’t shake off the scandals. That eventually developed into a leadership vacuum when Uber founder and CEO Travis Kalanick stepped down. How a new CEO now firmly in position, the company is trying to move past all that. It has lined up a new $10 billion investment deal which would further limit the role of the company’s founder and ex-CEO.
Uber confirmed today that a consortium comprising of Softbank and other partners will invest $1 billion in the company and buy $9 billion in shares from existing investors.
“Upon closing, it will help fuel our investments in technology and our continued expansion at home and abroad, while strengthening our corporate governance,” the company said in a statement.
He gets to retain his seat on the board and while he still has the power to appoint members to the two extra seats he controls, any changes will require majority approval of the board. These changes will also see key Uber investor Benchmark dropping its lawsuit against Kalanick.
This might help calm some Uber investors who have been concerned that Kalanick might try and claw his way back to the top job. It also brings a fresh infusion of cash to help Uber fund its future strategies.
The consortium will purchase $9 billion worth of shares from existing investors and shareholders. It will propose a price at which the stock will be bought and the shareholders will then have to decide if they want to sell and how many shares they’re willing to part with.
If SoftBank doesn’t get enough buyers it can either decide to raise the price of just walk away from the deal.
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