Peace Deal: Uber Board Paves the Way for Softbank Investment

Uber deal gives Softbank a stake and eases board tensions

In a statement to CNBC, Rajeev Misra, CEO of Softbank Investment Advisors and a Board Director of Softbank Group, said, "After a long and arduous process of several months it looks like Uber and its shareholders have agreed to commence with a tender process and engage with SoftBank". The deal is a vote of confidence in the company's potential and "will help fuel our investments in technology and our continued expansion at home and overseas, while strengthening our corporate governance", the statement said.

Uber argued that once in the bag, the investment would help fuel its development in the tech sector and its continued expansion at home and overseas, "while strengthening our corporate governance".

SoftBank would also be investing $1 billion directly in Uber as an extension of the last Series G round, at its last private valuation of almost $70 billion. SoftBank is also expected to invest billions more buying up shares from existing shareholders at a discounted rate, depending on demand from sellers. The deal will see 14 percent of the company change hands.

Notably, Benchmark, a venture capital firm that had sued former CEO Travis Kalanick won't pursue its lawsuit for now so that the SoftBank deal can go forward, per the Wall Street Journal.

SoftBank did not immediately respond to a request for comment. In return, Kalanick has agreed that his two board seats - now held by John Thain and Ursula Burns - would need majority approval from the board if they were to open up.

Uber was close on Sunday to selling a large stake of itself to Japanese conglomerate SoftBank, officials familiar with the matter told The New York Times. It also reduced Kalanick's and Benchmark's influence on the board by removing special voting powers in two categories of stock held disproportionately by Kalanick. Son has spearheaded the new round of investment in Uber.

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