An Uber-Softbank deal is "very likely" to occur within the next week, according to Arianna Huffington, who spoke at Wall Street Journal's D.Live event in Laguna Beach, CA. She wouldn't disclose the price -- it seems they're still working out the details -- but she did say that the Softbank investment would involve primary investing at the last valuation of the company, as well as secondary investing in additional shares. This means that the Japanese company could end up with at least 14 percent of Uber's shares. "The Softbank investment is so important," said Huffington, adding that Uber has lost quite a lot of money because of the competition (aka Lyft). "Having them on your cap table is very important when they're also investing in so many of our competitors around the world," she added, referring to rivals like Singapore's Grab and China's Didi Chuxing.
SoftBank Vision Fund will claim a 19.6 percent stake in General Motors Cruise Holdings, the automaker's autonomous vehicle unit, following a $2.25 billion investment. General Motors (GM) said the deal will further strengthen its plans to commercialise autonomous vehicle technology "at scale", which is on track beginning 2019. "GM has made significant progress toward realising the dream of completely automated driving to dramatically reduce fatalities, emissions, and congestion," said Michael Ronen, managing partner at SoftBank Investment Advisers. "The GM Cruise approach of a fully integrated hardware and software stack gives it a unique competitive advantage." At the closing of the transaction, Vision Fund will invest the first tranche of $900 million.
SAN FRANCISCO – Uber's tie-up with SoftBank suggests the ride-hailing giant is set to come of age in the business world, but it still faces a long road ahead. The deal is giving the world's most valuable startup an additional $1 billion in capital and could allow SoftBank to acquire as much as 14 percent of Uber over time. While Uber has become a global phenomenon, operating in more than 600 cities and dozens of countries, it is trying to move past a series of scandals and missteps that have included executive misconduct, a toxic work atmosphere and potentially unethical competitive practices. One step toward the future was the hiring of Chief Executive Dara Khosrowshahi earlier this year, which left founder Travis Kalanick in the background. But Uber needs to clean up its governance and other practices if it intends to meet its goal of a 2019 stock market debut that will open up the privately held firm to greater scrutiny.
SAN FRANCISCO/NEW YORK – Uber Technologies Inc.'s warring board members have struck a peace deal which allows a multibillion-dollar investment by SoftBank Group Corp. to proceed, resolving a legal battle between former Chief Executive Travis Kalanick and a prominent shareholder. Venture capital firm Benchmark, an early investor with a board seat in the ride-services company, and Kalanick have reached an agreement over the terms of the SoftBank investment, which could be worth up to $10 billion, according to two people familiar with the matter. The Uber board first agreed more than a month ago to bring in SoftBank as an investor and board member, but negotiations have been slowed by ongoing fighting between Benchmark and Kalanick. The agreement struck Sunday removed the final obstacle, allowing SoftBank to proceed with an offer to buy stock. Uber confirmed the deal was moving forward.