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

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

The consortium includes Dragoneer Investment Group and SoftBank, a Japanese conglomerate that has been making a series of increasingly high-profile technology investments. While Softbank is buying a 15 percent stake, other investors will buy another 5 percent stake, in accordance with the deal.

The shuffling of shares will reportedly drop Uber's value from about $68 billion to $48 billion.

SoftBank invested an additional $1.25 billion at a valuation of about $70 billion, according to reporting from Bloomberg Technology. The blended valuation is about $54 billion, said a person familiar with the matter.

Uber founder Travis Kalanick, who stepped down as chief executive in June, is reportedly one of the sellers. Other large institutional shareholders like First Round Capital, Lowercase Capital, Google Ventures, and Menlo Ventures are all possible participants in the sale.

"Uber has a very bright future under its new leadership", Misra said in a statement, citing the "professionalism" of the board and management team in helping close the deal.

Once officially closed, Softbank will be Uber's largest shareholder.


With the closing of the deal, Softbank will get two seats on Uber's board of directors - effective immediately, according to Uber.

In a candid interview with the Financial Times, Misra suggested that the company should refocus on its core markets to cut losses.

Travis Kalanick, who was ousted as CEO a year ago after a controversial run, will get $1.4 billion from the deal, making him officially a billionaire.

This roughly $9 billion deal is a kind of landmark, and not just due to its size.

The SoftBank investment is a victory for Uber's new CEO, Dara Khosrowshahi, who took over in September. There's no change to Khosrowshahi's target of 2019 for an initial public offering.

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