On Tuesday, the directors of Uber Technologies Inc voted to permit the SoftBank Group of Japan to invest in the ride services company and approved a number of changes in governance that increases the board’s independence and decreases the influence of Travis Kalanick, the former chief executive officer.Uber is attempting to shore up the company’s reputation after a series of scandals and move beyond a battle between Travis Kalanick and Uber investors headed by the Benchmark Capital of Silicon Valley.
Uber is attempting to shore up the company’s reputation after a series of scandals and move beyond a battle between Travis Kalanick and Uber investors headed by the Benchmark Capital of Silicon Valley.
In a statement, the company revealed that the Board agreed to move forward with the Softbank deal in coming weeks and changes in governance at Uber “that would strengthen its independence and ensure equaity among shareholders.”
A source that is familiar with the matter stated that a group of investors including SoftBank, General Atlantic, and Dragoneer Investment Group would be allowed to buy around $1 billion to $ 1.25 billion of new Uber shares at a company valuation of $69 billion and 14 to 17 percent of stock from present investors at a valuation that is discounted.
The same person, together with a second source stated that governance changes include increasing the size of the board from 11 directors to 17. The board will include an independent chairperson, three independent directors, and two seats that will be controlled by SoftBank once its investment closes.
Shareholders will now have one vote for every share, ending a class of supervoting shares in a decision that significantly decreases the power of Travis Kalanick and some early investors.