It was not long back when a conglomerate of Japanese technology, Soft bank, reached to Uber with a multi-billion investments deal. However, there was not much information or detail about the deal but it has been confirmed that the two big names have sealed the deal. Uber in their statement released yesterday confirmed that it has accepted Soft bank’s deal and the two have joined hands. However, no details are released even now.
Uber has confirmed the news and has stated that” We have entered into an agreement with a consortium led by Soft bank and Dragoneer on a potential investment.” They further added in their statement, “We believe this agreement is a strong vote of confidence in Uber’s long-term potential. Upon closing, it will help fuel our investments in technology and our continued expansion at home and abroad, while strengthening our corporate governance.”
Although, there is not much information on the matter but a source revealed some information on the deal. According to the plan of the deal, Soft bank will buy stock of Uber which will be worth USD 1 billion. The bank plans to buy 14 percent stake in the company and is, therefore, looking to buy the shares from the employees and investors of Uber. The deal has helped some of the early investors of the company, like Benchmark to be in the situation where they have sold their shares at a profitable price.
The news of the long-awaited deal came in public in the month of October but it got delayed to be finalized because of some legal disputes. Benchmark capital investor and the ousted CEO Travis Kalanick have managed to settle their disputes and it was yesterday when they made the investment official with all the agreements. With the confirmation of this deal, it has opened the paths for Uber to sell its stock in public. As according to the deal, the first public offering to sell the stocks will take place before the 2019 end. There has been no comment on the matter from Soft bank in Tokyo.