Uber Technologies Inc. shareholders are said to have agreed to sell a sizable stake in the ride-hailing leader to an investor group led by SoftBank Group Corp., allowing the Japanese conglomerate to amass a piece of the company at a steep discount to the last valuation.
The transaction implies a $48 billion value for Uber, according to a person familiar with the deal. The investor group, which includes SoftBank, Dragoneer Investment Group, TPG, Tencent Holdings Ltd., and Sequoia Capital, also will put at least another $1 billion directly into the San Francisco-based business at a higher valuation of $69 billion, according to the person, who asked not to be named because the transaction isn’t yet complete. The Wall Street Journal earlier reported the share sale.
The deal will make SoftBank one of Uber’s largest shareholders and comes with two board seats. It will also put in motion a slate of governance reforms that were dependent on the deal going through, which will expand the board to 17 and revoke outsize voting power given to early backers. Benchmark, Uber’s largest venture capital backer, will also drop a legal case it’s pursuing in arbitration against cofounder Travis Kalanick.
SoftBank had been seeking a stake of at least 14 percent in the deal. The Journal reported at least 20 percent of Uber’s shares had been tendered.
Dara Khosrowshahi has been a champion of SoftBank’s proposal since taking over as chief executive officer in September. In addition to the governance reforms, he’s looking to appease early employees and investors who don’t want to hold onto their shares until 2019, when Uber is expected to conduct an initial public offering.
It would also give the business some additional capital to beat back rivals, which have gained steam after a succession of setbacks for Uber. Didi Chuxing, the main ride-hailing option in China, recently said it raised another round of financing from SoftBank, this time topping $4 billion.
The closure of the Cambridge Sears could help an even larger project that would include office space and housing where the store and the mall’s garage now stand.Continue reading »
For two months, lawmakers and Governor Baker have been in a standoff over legislation — passed in the waning hours of the 2018 session — to tax and regulate short-term rentals.Continue reading »
One Los Angeles rental had excellent reviews and a host who had so impressed Airbnb that he was ranked as a “super host.” Then the nightmare began.Continue reading »
The added space would be enough to house around 2,000 employees.Continue reading »
Many nurses, including some in the union, worry about loss of flexibility on the job if a ballot measure passes Nov. 6.Continue reading »
The venerable news kiosk sold the magazine that sparked Microsoft co-founder’s inspirational moment. Now it’s threatened with closure.Continue reading »
A British company is making a major investment in Boston — a move that could help meet the huge demand and establish a new model for college housing.Continue reading »
At a HUBweek event, MIT officials outlined an ambitious project they say will transform Kendall Square.Continue reading »
The Massachusetts biotechnology sector is growing so fast that employers are offering increasingly generous — and almost unheard of — benefits to attract and keep workers.Continue reading »