- SoftBank’s big deal with Uber has closed: The firm now owns about 15% of shares in the ride-sharing company, purchased at a 30% discount.
- SoftBank will also invest $1.25 billion into Uber directly.
- Former Uber CEO Travis Kalanick is said to be making $1.4 billion off this deal, with influential Uber investor Benchmark making as much as $900 million.
Uber’s massive, multi-pronged deal with SoftBank has officially closed, ending a contentious process that will make the Japanese conglomerate the largest single shareholder in Uber and usher in sweeping changes to Uber’s governance.
SoftBank has acquired a 15% stake in Uber, through a combination of direct investment in the ride-hailing company and through buying the shares of existing Uber shareholder, Uber confirmed on Thursday, weeks after announcing that the transaction was underway.
Softbank, and a consortium of other investors, bought their Uber stakes at a steep discount, valuing the company at about $48 billion — about 30% less than its previous private valuation of $68 billion. Other investors in a SoftBank-led consortium, including Dragoneer Investment Group, purchased about another 5% of Uber. As part of the deal, SoftBank has also invested $1.25 billion directly into Uber.
SoftBank’s investment will spur Uber to overhaul its corporate governance. Those reforms include removing Kalanick’s super-voting rights on the board, increasing the company’s board size to 17, and adding new independent directors to the board. Those reforms go into effect immediately, says the company.