Uber secures multibillion dollar funding deal from SoftBank

Uber secures multibillion dollar funding deal from SoftBank

Yolanda Curtis
November 13, 2017

Uber's board on Sunday agreed to a deal opening the way for a consortium of investors led by Japanese conglomerate SoftBank to buy a significant stake in the ride-hailing giant, ushering Uber toward becoming a public company, according to press reports.

Under the terms of the deal, it is understood that Softbank will lead a $1 billion funding round with participation of Dragoneer Investment Group, a San Francisco-based investor.

In addition to the direct purchase of $1bn Uber shares, Softbank also wants to buy out other investors' shares up to a total of $9bn, according to financial newswire Bloomberg.

Uber's spokesman indicated that if the deal is completed, the money will be used to expand the business further as the competition at home and overseas is increasing.

In a statement, Uber said that 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".

Uber said the investment would be used to fuel the firm's expansion and power further investments in new technology. During that process, a price will be set for the stocks to be sold, the New York Times reported.

The move was unveiled shortly after reports emerged that its former CEO Travis Kalanick and an influential investor had buried the hatchet, paving the ways for the acquisition.

The two parties reportedly reached an agreement on control of board seats, which included Benchmark putting its lawsuit on hold-while Kalanick will allow directors to vote on his future appointments to the three seats he oversees.

SoftBank did not immediately respond to a request for comment. Son has spearheaded the new round of investment in Uber.

Technically, the deal will only be done once enough Uber shareholders opt to sell shares. But how about all the other cars that are more than a year old?

Other reports by iNewsToday