Uber to accept further Softbank investment following board meeting
Uber has announced that it will be accepting a further investment from Softbank following the agreement of its board members, with the sum estimated to be between $1bn and $1.25bn at the company’s previous valuation of $69bn.
“Today, after welcoming its new directors Ursula Burns and John Thain, the board voted unanimously to move forward with the proposed investment by SoftBank and with governance changes that would strengthen its independence and ensure equality among all shareholders,” Uber told CNBC.
“SoftBank's interest is an incredible vote of confidence in Uber's business and long-term potential, and we look forward to finalizing the investment in the coming weeks.”
Mark Okerstrom named as new Expedia CEO following Dara Khosrwoshahi’s exit to Uber
The terms of the investment will see Uber’s board growing from 11 seats to 17 seats, with Softbank receiving two of these new positions, whilst the remainder of the additional six will be independent.
The meeting also saw a resolution passed for the company to go public by 2019, something that Uber’s former CEO, Travis Kalanick and current CEO, Dara Khosrowshahi, both agree on.
“Today the Board came together collaboratively and took a major step forward in Uber's journey to becoming a world class public company,” Kalanick said.
“We approved moving forward with the Softbank transaction and reached unanimous agreement on a new governance framework that will serve Uber well.”
The restructuring of its board and extra investment may give Uber a new lease of life, having been on the end of significant criticism of late, losing its license in London whilst also preparing to leave Quebec following the introduction of new regulations.
- SoftBank replaces COO Claure amid rumoured pay rowLeadership & Strategy
- Meet the company: WeWork - from boom to bailout to rebirthLeadership & Strategy
- On the road: Uber and Lyft arrive in Metro VancouverLeadership & Strategy
- Saskatchewan government approves regulations for ride-sharing companiesLeadership & Strategy