Uber Completes Sale of $9.3 Billion in Stock Led by SoftBank

Uber Completes Sale of $9.3 Billion in Stock Led by SoftBank

Foto: Fotolia

Uber completed its deal with SoftBank, triggering a slate of governance reforms at the ride-hailing company, according to Bloomberg.

Uber shareholders sold about $8 billion at a discounted price to a group of investors led by SoftBank, making the Japanese conglomerate the largest shareholder. SoftBank also invested $1.25 billion directly into Uber at a valuation of about $70 billion, the same as 2016. The blended valuation is about $54 billion, said a person familiar with the matter.

The deal puts into effect changes to the company’s board and stock that were contingent on the transaction going through. Uber will create additional board seats, expanding the total to 17, significantly larger than most companies.

SoftBank intends to name one of its executives, Rajeev Misra, as well as Sprint CEO Marcelo Claure to the board, said the person familiar with the matter, who asked not to be identified. Four other the seats, including a board chair, will also need to be filled.

The reforms eliminate super-voting stock rights held by early employees and backers. Those include co-founder Travis Kalanick and venture capital firm Benchmark, who also plan to end a legal entanglement following the deal’s passage.

The SoftBank investment is a victory for Uber’s new CEO, Dara Khosrowshahi, who took over in September. The negotiations over the deal proved tense. At one point, SoftBank CEO Masayoshi Son publicly proposed investing in Uber’s U.S. competitor, Lyft, if the deal talks fell through. Dragoneer Investment Group and a consortium of other investors participated in the round with SoftBank.

More from category

Kylie Jenner Helped Erase $1.3 Billion off Snap Value in Just One Tweet

Kylie Jenner Helped Erase $1.3 Billion off Snap Value in Just One Tweet

24 Feb 2018 comment

Celebrities are powerful magnet on social networks, but can also cost them a lot of money as well. According to Bloomberg, Snap, parent company of Snapchat, lost a lot of market value thanks to just one celebrity tweet.

Ericsson Nikola Tesla Marks Solid Results in 2017

Ericsson Nikola Tesla Marks Solid Results in 2017

24 Feb 2018 comment

In 2017, Ericsson Nikola Tesla Group sales revenue amounted to million 1,481.6 kuna, 6.9% lower year-over-year. Of the total sales revenue, the domestic market accounts for 18.7%, services to Ericsson account for 62.5% (of which 12.1% relates to Managed Services in Croatia), while other export markets participate with 18.8%. Sales in the Networks segment amounts to MHRK 739.3 (2016.: MHRK 806.5), Digital Services segment amounts to MHRK 559.6 (2016.: MHRK 593.1), Managed Services segment amounts to MHRK 178.9 (2016.: MHRK 185.9) and segment Other amounts to MHRK 3.8 (2016.: MHRK 6.1).

Rovio Dragged Out of Silence After Stock Is Sold Off

Rovio Dragged Out of Silence After Stock Is Sold Off

23 Feb 2018 comment

The company behind the Angry Birds game, Rovio, is struggling to stop investors walking out, according to Bloomberg.