Uber Inc's co-founder Travis Kalanick, who was ousted as CEO in June, is selling nearly a third of his 10 percent stake in the ride-services company for about $1.4 billion, an individual knowledgeable about the matter stated on Thursday. However, the investor consortium is also making a $1.25 billion investment of fresh financing at the older, higher appraisal.
The ride-hailing co-founder, who was ousted from the company past year but remains on the board, reportedly plans to sell his shares in the business for about $1.4 billion to the SoftBank Group and its consortium of investors, which have valued Uber at $48 billion. Earlier, the former Uber CEO offered to sell half of his stake to the group.
Also selling Uber shares is Benchmark, a venture capital firm, which is reportedly moving 15 percent of its holdings worth about $900 million. This is a reflection of the struggles Uber experienced in 2017.
Uber also is being sued by Google's self-driving vehicle company, Waymo, which alleges that Uber stole its proprietary tech when it bought self-driving truck company Otto.
However, following Softbank's investment, there would be a completely different Uber from what it was before. In September, faced with a proposal to dilute his voting power, Kalanick appointed two additional members to the board in an attempt to consolidate his control. Under the deal, Softbank has insisted in changes in the governing policies which would lower the influence of former CEO Travis Kalanick, who is still on the board, notes Business Insider.
Ousted Uber chief Travis Kalanick stands to make a pretty penny off some of his company shares. Kalanick did not want competitors to get ahead. According to Bloomberg and Reuters, Kalanick is divesting a big chuck of his Uber stock.