SoftBank completed its long-awaited investment agreement with Uber on Thursday, making SoftBank the company’s largest shareholder and providing a huge payday for co-founder Travis Kalanick and other early backers.
“We’re proud to have SoftBank, Dragoneer and the entire consortium in the Uber family. This is a great outcome for our shareholders, employees and customers,” an Uber spokesperson said in a statement.
Kalanick, who was ousted as CEO last year after high-profile problems, will get $1.4 billion from the deal, a source familiar with the arrangement has told CNBC. His estimated fortune is $4.74 billion, according to Bloomberg.
Uber previously said the SoftBank deal would value the company at about $48 billion, a haircut from its previous valuation of nearly $70 billion. But the investment also provides liquidity for early employees, easing tension as the ride-hailing company aims for a 2019 public offering.
SoftBank has become an aggressive investor in Silicon Valley, and enters Uber’s board as the company recovers from a massive data breach, regulatory scrutiny and a damaging workplace culture report.
The governance changes that accompany the deal also mark a milestone for CEO Dara Khosrowshahi, who has now successfully consolidated power at a company that was rife with infighting when he arrived.
SoftBank is an investor in Didi Chuxing, the majority owner of Uber’s China operations, and has backed Grab, a ride-hailing company in Southeast Asia, as well as India’s Ola.
