On Sunday, global transportation company Uber announced they would receive a multibillion-dollar investment from Japanese conglomerate SoftBank. By striking the deal, Uber settled a legal battle that involved its former Chief Executive, Travis Kalanick, and ventures capital firm, Benchmark. The agreement can reportedly be up to $10 billion. The news of the potential investment came in October but this was held up by the Kalanick-Benchmark feud.
A number of controversies involving Kalanick led to his resignation as CEO in June. The one that made the most splash, however, came from Benchmark. The firm filed charges against Kalanick, alleging that, back in 2016, the co-founder convinced the board to give him power over three new board seats. This, in turn, led to Kalanick’s resignation. Now, Benchmark is willing to drop the charges if the deal gets done.
In the statement provided, Uber shows their interest in a potential partnership as it could help finance other future endeavors.
“Upon closing, it will help fuel our investments in technology and our continued expansion at home and abroad, while strengthening our corporate governance.”
Besides a large influx of money, the deal will link Uber to a company which invests heavily in tech. Softbank is most notable for its tech investing in Silicon Valley. The Japanese corporation is also known as a telecom and internet service provider giant having bought Sprint in 2013 for $20 billion. The deal would also mean Uber employees will be able to sell shares. SoftBank also has enough global ties to make Uber’s expansion easier in the future.
The conglomerate is joined by San Francisco-based investment group, Dragoneer, which plans to buy about $1 billion worth of Uber shares. If the deal comes to fruition, then the transportation company will need to restructure its board to accommodate the buyers so it might let Uber escape its tumultuous past.
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