By Katie Roof.
After months of talks, SoftBank Group is close to finalizing its investment in Uber. Multiple sources tell TechCrunch that the deal is expected to be signed later in the day on Sunday.
SoftBank plans to lead a $1 billion investment directly in the company alongside Dragoneer Investment Group. The joint venture will also buy up to $9 billion of shares from eligible existing shareholders in a tender offer, with the total investment amounting to at least 14% of Uber’s shares. Private equity firm General Atlantic is also participating.
Bloomberg, which first reported the news, said that venture capital firm Benchmark Capital will be dropping its lawsuit against former CEO Travis Kalanick, as a condition of the deal. We’re told that this is happening as long as enough shareholders sell shares to execute the tender offer. An agreement has also been struck that would require a vote for any future board appointments by Kalanick, should Ursula Burns or John Thain give up their seats someday.
Read more at TechCrunch.