Uber CEO eyes IPO bid in 2019
In a move that could potentially resolve a legal battle between its former Chief Executive Travis Kalanick and a prominent shareholder, Uber has reportedlystruck a deal for a huge investment by a consortium led by Japanese conglomerate Softbank and San Francisco group Dragoneer.
While the size of the investment has not been disclosed, reports suggest it could be up to £7.6bn which the ride-hailing firm will reportedly use for its expansion and investments in technology.
“We’ve entered into an agreement with a consortium led by SoftBank and Dragoneer on a potential investment,” an Uber spokesman said, adding: “We believe this agreement is a strong vote of confidence in Uber’s long-term potential.”
The Uber board had first agreed more than a month ago to bring in SoftBank as an investor and board member, but negotiations scuppered due to the ongoing fighting between Benchmark and Kalanick. Yesterday’s agreement has, however, removed the final obstacle by allowing SoftBank to proceed with an offer to buy to stock.
But it could transform its corporate structure if the deal goes ahead.The company’s new boss, Dara Khosrowshahi, also revealed the group’s intentions this weekend when he said the company can launch its bid for IPO in 2019.
That could help bring stability to the world’s most valuable start-up after a year of scandals, infighting and the ousting of former chief executive Travis Kalanick in June.