SoftBank finally struck a deal with the leading taxi booking company, Uber last night. According to the deal, the Japanese Conglomerate is to own more than 15% share of Uber at a discounted amount of $48 billion.
Hence making it the major source of investment for Uber. CEO at SoftBank, Masayoshi Son had previously expressed the company’s interest in investing in August, but the name of the taxi transportation company was yet to be finalized. However, Uber and Lyft were the major contenders.
Uber is not the first ride-hailing companies invested by SoftBank. The tech giant has already put money in major companies like Didi in China, Grab in Southeast Asia, Ola in India along with other 99 in Brazil.[ CAPTION: SoftBank comes to Uber’s rescue ][ SOURCE: The Financial Express ]
In an interview Uber said,
We look forward to working with the purchasers to close the overall transaction, which we expect to support our technology investments, fuel our growth, and strengthen our corporate governance.
However, the deal is yet to be closed and is said to be sealed only in January. Shareholders of Uber decided to sell the shares as the company was already getting knee-deep in the mud. Uber has undergone a rather unfavorable turn of events over the years with multiple scandals, rumors, and lawsuits.
The taxi company is also going under investigations regarding its toxic culture. In addition former CEO of Uber, Travis Kalanick worsened the matter when he earlier appointed two members without prior notice.
Now with the acquisition of more than 15% of shares by SFTBF, will Uber be back in the game?