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Published: Tue, November 14, 2017
Economy | By Melissa Porter

Softbank set to buy $10 billion stake of Uber

Softbank set to buy $10 billion stake of Uber

And if Softbank isn't able to buy at least 14 percent of Uber, it can walk away.

But it was threatened by conflict between Kalanick and USA venture capital firm Benchmark.

SoftBank would also be investing $1 billion directly in Uber as an extension of the last Series G round, at its last private valuation of almost $70 billion.

SoftBank, however, struck a sharper tone in a statement released Monday.

CNBC reports that a SoftBank-led consortium of investors seeks to buy $1 billion worth of fresh stock in Uber at its current valuation of about $68.5 billion, and that the ride-hailing company was close to being ready on Sunday to finalize the deal.

The SoftBank investment isn't just about the money, however.

The size of the deal has not been disclosed, but according to records, it could be up to $10 billion.

Uber now is valued at $68.5 billion, but stock offers will be based on a lower valuation, so it's unknown just how much the multibillion-dollar deal will be worth, said the person, who spoke on condition of anonymity because details were not released. Part of the delay has related to determining former CEO Travis Kalanick's board role.

In turn, Kalanick must receive majority board approval should he want to replace the board seats over which he has control, according to the source. Kalanick blindsided Uber in September by appointing two new members without notice.

Uber plans to run newspaper ads informing investors about the share purchase, and SoftBank will propose a price at which it will buy stock. The case had been set to go to arbitration. "Upon closing, it will help fuel our investments in technology and our continued expansion at home and overseas, while strengthening our corporate governance".

SoftBank publicly expressed interest about investing in Uber over the summer, while the startup was still looking for a CEO to replace Kalanick after months of operating with a mostly empty C-suite. Son has spearheaded the new round of investment in Uber. "Because all the parties, in the end, they know this is a good direction".

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