Company - - Jan 05,2018
Travis Kalanick plans to sell the stake of about $1.4 billion in the tender offer for Uber shares by a SoftBank-led consortium, the people involved in the matter said on Thursday.
Former Uber Technologies Inc. Chief Executive Officer Travis Kalanick, who has long bragged that he’s never sold any shares in the company he co-founded. Finally, he decided to take a strong move with this sale. Also, Kalanick would become an actual billionaire for the first time as a result of the sale. Kalanick was pressured to resign last year after the company became stuck in some legal woes. He then also clashed with Benchmark, one of the company’s earliest and biggest investors, which is also selling part of its stake.
Kalanick’s share sale will earn him about $1.4 billion, the source added. The former Uber CEO is still on the board of directors.
It has been also reported that the SoftBank deal values Uber at $48 billion, about a 30 percent discount from its most recent valuation of $68 billion. However, the investor association is also making a $1.25 billion investment of fresh funding at the older, higher valuation. The transaction mainly symbols a victory for new CEO, Dara Khosrowshahi, who helped broker the deal and who will also benefit from a deep-pocketed investor like SoftBank.
Mr. Kalanick controls three Uber board seats, one he occupies and rest appointed to others. In a move in September that surprised fellow board members, he appointed two new directors, Xerox Corp. ex-CEO Ursula Burns and CIT Group Inc. ex-CEO John Thain; to fill those seats.
Another fact is that, once the SoftBank deal closes, a number of governance reforms, relevant to this deal will kick in, which will significantly reduce Travis’ influence at the company.