Final deal with Uber linked to price, shares offered: SoftBank

Cesar Mills
November 15, 2017

Those changes are contingent on the SoftBank investing in Uber.

SoftBank and Dragoneer are leading a consortium that plans to invest $1 billion to $1.25 billion in Uber, the mostly highly valued venture-backed company in the world, along with a purchase of up to 17 percent of existing shares in a secondary transaction.

With so many scandals, issues and controversies, Uber need this investment.

But Uber needs to clean up its governance and other practices if it intends to meet its goal of a 2019 stock market debut that will open up the privately held firm to greater scrutiny.

"SoftBank shows a remarkable amount of bravery, confidence and optimism to look to apply this much money in technology", said Bill Maris, who started Google Ventures almost a decade ago and runs his own California-based investment firm Section 32. But at the same time it has faced resistance from traditional taxi operators and regulators, and faces a possible ban in cities like London for failing to live up to local rules.

To allow the deal to go forward, Benchmark has agreed to immediately suspend its lawsuit against Kalanick, which it filed in August in an effort to diminish the ex-CEO's power at the company and force him off the board, reports said (See: Former Uber chief Travis Kalanick strikes back at Benchmark Capital).

Uber has entered into an agreement with a consortium led by SoftBank and Dragoneer to explore a potential investment that some reports suggest could be worth of up to Dollars 10 billion.

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"By no means is our investment decided".

SoftBank may not invest if conditions on share price and a minimum of shares are not satisfactory for the SoftBank Group side.

"We've entered into an agreement with a consortium led by SoftBank and Dragoneer on a potential investment".

The ride-hailing company said the money would fuel Uber's expansion and investments in technology. It is in court facing Waymo, the former Google Car unit, which has alleged the theft of trade secrets on autonomous vehicle technology, in a case pending in California. If Uber is hesitant to sell and SoftBank does not get 14% of ownership, Softbank can cut off the deal. "I think that's where SoftBank has its focus on the investment", the analyst added.

Uber is facing huge competition globally and it needs the funds to expand and improve its services.

Uber appears to have a head start on its rivals, but it's not clear if it can keep its lead. He still has a seat on the company's board.

Other reports by GizPress

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