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Uber approves multi-billion-dollar investment by Softbank

November 13, 2017

Human cloud, ride-sharing firm Uber Technologies Inc. reached agreements that will allow Japan-based internet and telecommunications giant SoftBank Group Corp. and other firms to invest up to $1 billion in the firm and proceed with a tender offer in coming weeks to buy up to $9 billion in shares from existing investors.

If completed, San Francisco-based Uber plans to use the funds to expand its business and boost its investments in technology and strengthening its corporate governance.

Fortune reports Uber’s warring board members have struck a peace deal that allows the investment by SoftBank Group to proceed, and which would resolve a legal battle between former Chief Executive Travis Kalanick and a prominent shareholder.

However, the deal could still fall through if there aren’t enough interested sellers, according to Bloomberg. The deal also includes Uber governance changes. 

“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.”

A British judge ruled Friday that two Uber drivers were not independent contractors, upholding a lower panel’s decision that they were workers who should receive minimum wage and paid holidays, The Associated Press reported.