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Former Uber CEO Travis Kalanick selling part of stake

08 January 2018
Former Uber CEO Travis Kalanick selling part of stake

Former Uber CEO and co-founder Travis Kalanick plans to sell 29 percent of his stake in the ride-sharing service, realizing an estimated $1.4 billion from the deal.

In late August, Uber announced that it was appointing former Expedia CEO Dara Khosrowshahi to run the company. However, as Bloomberg states, he later had to withdraw to be in line with an agreement between Uber and the consortium.

Also selling Uber shares is Benchmark, a venture capital firm, which is reportedly moving 15 percent of its holdings worth about $900 million.

Uber also is being sued by Google's self-driving vehicle company, Waymo, which alleges that Uber stole its proprietary tech when it bought self-driving truck company Otto. This is a reflection of the struggles Uber experienced in 2017. After the company meddled into several issues ranging from harassment accusations to the toxic workplace culture, he finally stepped down.

However, following Softbank's investment, there would be a completely different Uber from what it was before. It will include four independent directors, will limit early shareholders' voting power, and will limit the control Kalanick has on the board. SoftBank had been hinting of taking its billions of dollars and global influence to back rival Lyft.

The stock dump is connected to a transaction between the company and Softbank Group, a Japanese corporation that has been mulling substantial investments in the company, according to Bloomberg.

Kalanick owns 10% of the company and the deal values Uber at $48 billion. Kalanick did not want competitors to get ahead. Reports earlier in the year alleged Kalanick was adamantly trying to stage a comeback after he was effectively pushed out of the helm by fellow board members following months of apparent embarrassments and setbacks like allegations of internal misconduct.