Uber comes of age with SoftBank tieup

Uber comes of age with SoftBank tieup

Enderle said Uber's agreement with SoftBank is "a great start, but just that, and the truly hard work is still to be done".

As part of the deal, Uber's board agreed to carry out a set of sweeping governance changes, including measures that reduce the influence that Travis Kalanick, Uber's former chief executive, has at the company.

"Upon closing, it will help fuel our investments in technology and our continued expansion at home and overseas, while strengthening our corporate governance", it added.

SoftBank is expected to buy up shares from some investors by pumping in as much as $9 billion, in a so-called tender offer to Uber stakeholders.

Confirming the development, an Uber spokesperson said: "Shweta has been a great advocate for Uber and the development of ridesharing in India". The agreement will not only give SoftBank a major stake in Uber - it is looking to buy up at least 14 per cent of the company - but it will help put a rest to one of the many ongoing battles for new CEO Dara Khosrowshahi.

With so many scandals, issues and controversies, Uber need this investment. The terms were signed on Sunday, although the tender offer would likely take weeks to complete.

Uber, a leading firm in global ride-hailing services, is the most valuable venture-backed company in the world, with a value estimated at 68 billion dollars. If Uber is hesitant to sell and SoftBank does not get 14% of ownership, Softbank can cut off the deal. The investment could be worth up to $10 billion, two people familiar with the matter have said. A board majority would have to approve any appointments by Kalanick, who controls three seats.

Uber's board already approved a slate of governance reforms that are contingent on completion of the SoftBank deal. In addition to his own seat, Kalanick controls two more, which are occupied by Ursula Brown, the former Xerox Corp CEO, and former Merrill Lynch & Co Inc CEO John Thain.

The latter filed a lawsuit against Kalanick, accusing him of fraud, breach of contract and of plotting to manipulate the board of directors to allow him to return as CEO following his resignation in June.

SoftBank's investment in Uber pressures Uber's main American rival, Lyft, to raise more money to compete on driver incentive deals and lower prices.

SoftBank plans to purchase the Uber shares along with other investors, including Dragoneer, an investment firm. Is Uber still worth $68bn?

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