Decision on investing in Uber not final yet, says SoftBank

The ride-hailing startup said that it has reached an agreement for what could be a massive investment from SoftBank the Japanese conglomerate after months of speculation about a possible deal

Now what we know is that SoftBank will buy at least 14% of Uber stakes.

The deal could still fall through if there aren't enough interested sellers.

Essentially, this means that although Uber has agreed to move forward with SoftBank's proposal, the tender offer price is still under negotiation.

The agreement follows an October 3 Uber board meeting, in which directors voted to move forward with an investment from SoftBank. "We believe this agreement is a strong vote of confidence in Uber's long-term potential".

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".

The person says former Uber CEO Travis Kalanick (KAL-uh-nick) and investor Benchmark Capital reached agreement on Kalanick's future board appointments, clearing the way for the investment.

The Benchmark-Kalanick lawsuit is almost dead, but this isn't a clear victory for Uber's ex-CEO.

Uber has struck a deal that could lead to a huge investment by a consortium led by Japanese conglomerate Softbank and San Francisco group Dragoneer. The terms were signed on Sunday, although the tender offer would likely take weeks to complete. SoftBank's roughly $1-billion investment of fresh funding is expected to be at the same valuation. As part of the deal, the investors will also pick up around 17% of existing shares in a secondary transaction.

A spokeswoman for Benchmark did not immediately respond to a request for comment, and a spokesman for Kalanick declined to comment.

Uber's chief of policy for India and South Asia has quit, two sources familiar with the matter said on Monday, in the latest high-level departure at the online taxi company.

Uber's board already approved a slate of governance reforms that restrict Kalanick's role at the ride-hailing company, including equalising the voting power of different share classes and increasing the size of the board to 17 to allow for new independent directors.

Uber's tieup with Japanese tech giant SoftBank suggests the ridesharing giant is set to come of age in the business world, but it still faces a long road ahead. During that process, a price will be set for the existing Uber shares. If Uber is hesitant to sell and SoftBank does not get 14% of ownership, Softbank can cut off the deal.

The deal with SoftBank is aimed at getting past the clashes between Kalanick and early investors like Benchmark Capital, which has sued the former CEO.

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