Travis Kalanick to Bag $1.4 Billion From 29% Shares Sale of Uber

image credit: sickchirpse.com

According to Bloomberg, the former Uber Technologies Inc. CEO, Travis Kalanick, who had long boasted that he’d never sold any shares in the company he co-founded, plans to sell about 29 percent of his stake in the ride-hailing company, people with knowledge of the matter are reported to have said.

The report says, Kalanick who is one of the wealthiest people in the world on paper, would become an actual billionaire for the first time as a result of the sale. He was pressured to resign last year after the company became mired in legal woes and a raft of government investigations into how it does business. He also clashed with Benchmark, one of the company’s earliest and biggest investors, which is also selling part of its stake.

Terms of the deal bar sellers from parting with more than 58 percent of shares initially offered, requiring Kalanick to sell a smaller portion of his stake. Bloomberg claims spokesmen for Uber and Kalanick declined to comment on the development.

GV, Alphabet Inc.’s venture capital firm, offered up significantly less than half of its stake in Uber even though Alphabet’s self-driving car subsidiary Waymo is suing Uber for stealing trade secrets. In October 2017, another Alphabet investment firm, CapitalG, said that it was leading an investment in Uber’s primary U.S. competitor, Lyft Inc.

This publication suggests that Kalanick stands to reap about $1.4 billion from the transaction with SoftBank Group Corp. and a consortium of investors who have agreed to buy equity valuing Uber at $48 billion, said the people, who asked not to be identified discussing private negotiations. Kalanick, who owns 10 percent of the company, had offered to sell as much as half of his stake — the maximum board members were allowed to tender. He had to pare back the amount because of limits outlined in the agreement between Uber and the buyers, the people said.

SEE ALSO |  Nigeria’s Accounteer Wins $50,000 in Equity Investment from Meltwater Foundation

The SoftBank deal is expected to close in the latter part of January, 2018. Once it is finalized, a number of governance reforms that effectively reduce Kalanick’s influence at Uber will go into effect.

Credit: Bloomberg


Do you have any African tech tip or news article for publication, send it to editor@thespiritedhub.com.

Follow #TSH on Facebook and Twitter for more trending news!

Post a Comment

Your email address will not be published. Required fields are marked *