The peace deal struck by Uber's board will allow Softbank to make an investment worth up to $10 billion, according to sources. Fred Katayama reports.
Uber's board strikes a peace deal. That, sources say, will allow SoftBank to make an investment worth up to $10 billion in the ride sharing firm. The Japanese conglomerate plans to buy up to 17 percent of Uber's existing shares from investors and employees. Softbank also heads a consortium of investors that plans to invest up to $1.25 billion. Uber is valued at $68 billion. A legal battle between Uber's former CEO Travis Kalanick and a major shareholder, the venture capital firm Benchmark, had applied the brakes on negotiations between Uber's board and SoftBank. To allow the SoftBank deal to proceed, Benchmark has agreed to suspend its lawsuit against Kalanick that had sought to curb his power and oust him from the board. Uber investor and political strategist Bradley Tusk said, "Uber had a remarkable first six or seven years, a bumpy past two years, and now the SoftBank deal allows for a full reset." Uber has been plagued by sexual harassment and discrimination allegations, federal probes, executive departures and Kalanick's resignation.