Published: Fri, January 05, 2018
Markets | By Rosalie Gross

SoftBank agrees to purchase massive stake in Uber

SoftBank agrees to purchase massive stake in Uber

Uber's co-founder and former CEO Travis Kalanick is reportedly selling 29% of his shares worth $1.4 billion in Uber, reports Bloomberg.

The ride-hailing co-founder, who was ousted from the company past year but remains on the board, reportedly plans to sell his shares in the business for about $1.4 billion to the SoftBank Group and its consortium of investors, which have valued Uber at $48 billion.

Much of SoftBank's stake came from buying shares from earlier Uber investors and employees - including, it seems, Kalanick himself. The deal values Uber at $48 billion which is about 30% less from its most recent valuation of $68 billion.

Kalanick, who owns 10 percent of Uber, resigned as CEO past year following revelations of sexual harassment in the company, technological trickery created to hinder regulators and a cover-up of a hacking attack that stole personal information of 57 million passengers and 600,000 drivers.

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Kalanick will get $1.4 billion from the sale. Kalanick owns a 10 percent chunk of the company.

The Softbank is expected to invest around $9 billion in the ride-hailing service Uber.

Kalanick was ousted as chief executive officer in June 2017.

Once the SoftBank deal is officially closed later this month, governance reforms will go into place that signficantly reduce Kalanick's role at Uber. Kalanick was replaced by Dara Khosrowshahi, who is attempting to turn Uber's image around despite the past.

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