Reported by Recode, Uber Technologies Inc. and Softbank Group Corp. are expected to reach an investment agreement within the next week for a deal where Softbank will acquire up to one-fifth or approximately a 15 percent stake in Uber.
According to Arianna Huffington, an Uber board member, said on Monday during an interview, at The Wall Street Journal’s WSJD.Live technology conference, the deal between Uber and Softbank is “very likely.” She says the two companies will go into talks about about pricing for the deal to buy back shares from shareholders.
Huffington did not disclose the exact pricing of the deal, Softbank could invest up to $10 billion into Uber, according to sources familiar with the matter. This deal could increase Uber’s value up to over $50 billion.
But the deal also matters on whether investors and shareholders will sell part of their ownership in the agreement. Although, it was reported that most shareholders are interested in selling a higher share price of when Uber was valued at $68 billion by private investors in the last funding round.
Huffington did also speak about Uber’s current state and the issues that rose up from during aftermath of former CEO, Travis Kalanick.
Uber is still currently in the works of picking itself up from the mess Kalanick had left it in when he stepped back in June. Uber is in the spotlight for scandals as it was recently made public that the ride hailing service is involved in five different U.S. criminal probes.
Huffington had acknowledged the problems Uber faced under Kalanick and approves wholly of the decision for Kalanick to step down and new CEO, Dara Khosrowshahi.
Khosrowshahi took the reigns of CEO back in late August and is now tasked with rebuilding the company from the bad public relations and negative image.
The possible investment by Softbank also comes after Khosrowshahi’s announcement to take Uber public by as early as 2019.