Uber Technologies Inc. completed a $9.3 billion sale in stocks with Softbank Group Corp., confirmed by Bloomberg. Uber shareholders sold approximately $8 billion at a discounted price, including Uber founder Travis Kalanick’s sale of his stake, to investors led by Softbank, positioning Softbank as the largest investor. Dragoneer Investment Group and other investors took part in the round.
Softbank previously invested $1.25 billion into Uber at the time when Uber’s valuation was about $70 billion.
The deal now puts changes into effect to the company’s board and stock that were contingent on the transaction finishing. Through the transaction agreements, Uber’s board will now expand to 17 seats. As for executives, Softbank intents to name one of its executives, Rajeev Misra, and Sprint CEO Marcelo Claure to the board, said a source familiar with the matter.
“We’re proud to have SoftBank, Dragoneer and the entire consortium in the Uber family. 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.” told Uber’s spokesperson to TechCrunch.
The agreement also makes Kalanick a billionaire on paper after selling 30 percent of his total stake in the business. Kalanick was the former CEO of Uber, who stepped down last year after pressure from investors to reshape the company.
“Uber has a very bright future under its new leadership. It is now part of a wider SoftBank network ranging from Sprint to WeWork. I look forward to SoftBank helping Uber become an even bigger global success.” said Misra on a statement.
The transaction with Uber is definitely a new forward for the ride hailing service after having a shaky year. After Kalanick stepped down, former Expedia CEO Dara Khosrowshahi took the reigns as Uber CEO. Immediately, Khosrowshahi’s main focus for Uber was to reshape the company and build better public relations after continuous scandals.