Uber has completed the sale of its stock, following which SoftBank has become its largest shareholder. Uber sold a total of $9.3 billion in stock, of which $8 billion has been sold at a discounted price to a group of investors led by SoftBank. In addition to that, SoftBank has also invested $1.25 billion directly into Uber at a valuation of $70 billion. The blended valuation is about $54 billion.
The deal with SoftBank is seen as a positive development since new Uber CEO Dara Kosrowshahi, who assumed the role in September. “This is a great outcome for our shareholders, employees and customers, strengthening Uber’s governance as we double down on our technology investments and continue to bring our services to more people in more places around the world,” an Uber spokesman is quoted as saying in a Reuters report.
Closure of the deal also puts an end to ]Uber’s disturbed board for months. Benchmark Capital, an early and large investor, sued in August to force co-founder and former CEO Travis Kalanick off the board. Other than the conflicting boardroom, Uber has been also under the heat following a massive data breach, unhealthy work culture, and a lawsuit claiming theft of trade secrets.
Upon completion of the deal, Benchmark has agreed to drop its lawsuit against Kalanick, size of the board will also increase, from 11 to 17 with members including four independent directors, limit some early shareholders’ voting power and slash the control wielded Kalanick, who remains on the board. SoftBank has reportedly named its executives, Rajeev Misra, and Sprint Corp CEO Marcelo Claure to the board, according to people familiar with the matter. Four more positions will also be filled.