With deal closed, SoftBank Group becomes the largest stakeholders in Uber
New Delhi, Jan 19: Uber Technologies closed a deal with a group of investors led by SoftBank closed on Thursday, in turn making SoftBank the largest stakeholder in the taxi service- Uber.
The deal includes a large purchase of shares from existing Uber investors and employees at a discounted valuation for the company of $48 billion, a 30% drop from Uber’s most recent valuation of $68 billion. These secondary stock sales will be completed by the end of the day Thursday on the Nasdaq Private Market, an Uber spokesman said.
In all, the investors will take a stake of about a 17.5% in Uber, with SoftBank keeping 15%, becoming the company’s largest shareholder. The investment triggers a number of governance changes at Uber, including the addition of new board members, which take effect immediately.
The official closing of the deal marks the end of a months-long process fraught with infighting among board members.
The board first voted to move forward with the SoftBank investment in October, and the deal at times seemed close to falling apart until Uber said last month that the investor group had enough willing stock sellers to go through with the transaction.