SoftBank tender for Uber stake succeeds

As part of the deal, Uber's board will expand from 11 to 17 directors, with Softbank's investor group taking two of the new seats.

Uber suffered another blow this month when the European Union's top court ruled that the ride-share company should be regulated like a taxi company and not a technology service, a decision that could change the way Uber functions across the continent and crimp its future profit potential.

The completion of the deal is the first significant achievement for Uber's new CEO Dara Khosrowshahi, who took over in August after an ugly year at the company defined by sexual harassment and discrimination allegations, executive misbehavior, lawsuits, and plenty of finger-pointing within the company's board room. However, the Journal reports that SoftBank will limit its stake to 15%.

Uber hasn't had a great year. The companies said they would issue a statement on the outcome of the tender offer. Still, $48 billion is very different than $70 billion.

According to the Wall Street Journal, a Japanese investor group is now buying up a large stake of Uber - and getting it at a sharp discount, too.

Uber's legal tangles include a lawsuit by Alphabet Inc.'s self-driving auto unit Waymo that alleges trade-secrets theft and federal investigations that span possible bribery of foreign officials in Asian countries and the use of software to evade regulators.

Still, the price is at a 30 percent discount to the most recent valuation of $68 billion.

SoftBank and its co-investors have successfully acquired at least 13 percent of Uber, a major victory for Uber's new CEO and one that will give billions of dollars in cash to some of the company's earliest investors and employees.

Rajeev Misra, chief executive of SoftBank's Vision Fund, a tech investment vehicle, will be nominated to the Uber board, the Journal reported.


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