Former Uber CEO, Travis Kalanick, will reportedly become $1.4 billion richer, as sources claim that the ride-hailing co-founder plans to sell a third of his 10 percent stake in the company.
According to anonymous sources, Kalanick will sell 29 percent of his Uber shares, something which he previously said he hadn’t done since 2009 when Uber was founded.
Kalanick’s decision to sell comes after a consortium led by Japanese tech conglomerate, SoftBank Group, acquired a 17.5 percent stake in Uber. Softbank’s acquisition most relied upon buying shares from early investors and employees, however, the tech company also announced it will invest $1.25 billion in Uber for future endeavors. SoftBank closed the deal last week and the union is expected to become final in the first part of this year. The deal values Uber at $48 billion, which was at a 30 percent discount from its latest valuation of $68 billion.
While Kalanick reportedly offered to sell half of his total shares, the deal with Softbank imposed a limit of how much a person could dispose of their stock. Thus, the former CEO is said to sell 29 percent. According to a source, several other investors were unable to sell the desired amount of shares.
The SoftBank deal will also diminish Kalanick’s hold on Uber, including preventing him from being appointed chairman of its board again.
Kalanick was deposed as Uber CEO after he was accused in early 2017 of encouraging a sexist work environment by Susan Fowler, a former engineer for the app. The backlash also uncovered a series of schemes that sought to trick regulators and customers alike. Kalanick was forced by investors to resign in June.
Two months after Kalanick’s departure, Uber appointed its new CEO, Dara Khosrowshahi, who played an important part in the latest SoftBank deal.
Kalanick, SoftBank, and Uber have not currently provided details regarding the potential sale.
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