Softbank likely to buy $10 bn stake from Uber

Technology - Mohit Shah - Nov 13,2017

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softbank likely to buy dollar 10 bn stake from uber

This investment is viewed as a positive step for the ride-hailing company to motivate Uber’s investments in advance technology.

Uber has bagged a significant deal with Japanese multinational Softbank and San Francisco group Dragoneer, which is expectedly marked at $10bn (£7.6bn).

The news was delivered by Uber, which revealed that, an agreement has been fixed with a conglomerate chiefly managed by Softbank and Dragoneer that involves a “potential investment”. The ride-hailing company further informed that, the money would work to support Uber's spreading out and investments in technology.

It is believed that, Uber is planning to solidify its corporate governance apart from boosting its investments in the field of technology. However, the raging news about the investment hasn’t been purely confirmed from the Japanese telecommunication and technology giant.

Masayoshi Son, chief executive at Softbank said last week that nothing is decided regarding any “investment in Uber”. He added, in case a deal is struck it would be determined by on "pricing and the terms and conditions" since a major share of Softbank's investment would be utilized to buy shares managed by current investors.

It is reported that, purchasing existing shares would supposedly allow Softbank to possess 14% stake in Uber, whereas an amount of $1bn is believed to be kept differently for buying new shares.

The deal was announced in October, however, was delayed due to corporate governance as well as legal disputes between potential investor Benchmark Capital and exiled CEO Travis Kalanick. This tussle was set to rest on Sunday, making way for the SoftBank investment to move smoothly, according to sources.