Uber enters into agreement with Japanese conglomerate SoftBank to sell stake

NewsBharati    13-Nov-2017
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San Francisco, November 13: Uber has reached a deal on Sunday to sell a significant stake of itself to SoftBank, a Japanese technology conglomerate. The company has agreed to invest billions in the ride-hailing company. The company gets new revival energy after going through a series of scandals, leadership turmoil, and executive departures.

For the completion of the process, it will take at least one month. Under the process tender offer, a price will be set for the existing Uber shares. The plan of the company is to buy about $1 billion of fresh stock from Uber. Uber’s main rivals in Southeast Asia, Ola and Grab also enjoy major investment from Soft Bank.

“We’ve entered into an agreement with a consortium led by SoftBank and Dragoneer on a potential investment," Uber said in a 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.”

On October 3 in a board meeting of Uber, directors voted to move forward with an investment from SoftBank. This new step will help the company to sell stock to the public before the end of 2019.

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