Former Uber CEO Travis Kalanick to sell 29% of his stake to SoftBank consortium, say reports
Kalanick stands to earn $1.4 billion from the sale.
Uber’s former Chief Executive Officer Travis Kalanick is selling 29% of his stake in the ride-hailing service he co-founded, Reuters reported.
Kalanick was ousted as chief executive officer in June 2017. He stands to earn $1.4 billion (Rs 8,000 crore) from the sale, Bloomberg reported, quoting a person familiar with the matter.
Kalanick is selling his shares as part of Uber’s deal with a consortium led by SoftBank Group Corp, which is taking a 17.5% stake in the company by buying shares from early investors and employees. The deal values the ride-hailing services firm at $48 billion (Rs 3 lakh crore), Uber said in December. The price is a 30% discount to Uber’s most recent valuation of $68 billion.
Kalanick owns 10% of the company. He first offered to sell half of all his shares, but settled at 29% as there was a limit on how much SoftBank will buy, Reuters quoted a source close to the deal as saying. Kalanick never sold shares of the company before, and the sale makes him a billionaire for the first time, the report said.
Kalanick was forced to step down following numerous controversies involving the management of the company. Dara Khosrowshahi took over the company after him and helped negotiate the deal with Softbank.