Published: Mon, November 13, 2017
IT | By Lester Massey

Uber approves Softbank's multi-billion dollar investment

Uber approves Softbank's multi-billion dollar investment

Ride-hailing app Uber has agreed to sell a stake of itself to Japanese investment group Softbank, for a figure believed to be $10bn.

Under the terms of the deal, it is understood that Softbank will lead a $1 billion funding round with participation of Dragoneer Investment Group, a San Francisco-based investor.

A deal would be positive for Uber, which is looking ahead to the future in the wake of recent repeated scandals, among them workplace sexual harassment allegations.

Uber said the investment would be used to fuel the firm's expansion and power further investments in new technology.

The purchase of existing shares will be conducted through a tender-offer process, which could take at least a month to finalize.

The move was announced shortly after reports emerged that its former CEO Travis Kalanick and an influential investor had buried the hatchet in a long feud that paved the way for the acquisition.

SoftBank did not immediately respond to Ars' request for comment. Uber investor Benchmark agreed to drop its fraud lawsuit against Kalanick if the Softbank deal goes through.

Although Kalanick quit as Uber chief exec, he remains on the board, having previously created the seat he now occupies.

Softbank is a major Japanese conglomerate which has made a habit of investing in tech firms in Silicon Valley, with the likes of Slack and WeWork already on the receiving end of major investments from the company, which also bought United Kingdom chipmaker ARM Holdings.

In October, Uber's board made sweeping reforms within the company proposed by new Uber CEO Khosrowshahi and Goldman Sachs, which set the SoftBank deal and the 2019 IPO plans in motion.

© 2017 San Jose Mercury News under contract with NewsEdge/Acquire Media. But how about all the other cars that are more than a year old?

See products that are available for YOUR auto at: Make My vehicle Safe, the premium online seller of auto safety products for ALL cars.

Like this: