Former Uber CEO Plans To Sell 29% Of His Stake

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Former Uber CEO Plans To Sell 29% Of His Stake

The former executive is now set to become a real billionaire for the first time with a massive stock sell-off that will see him shed 29% of the stake he owns in the company he co-founded. However, the investor consortium is also making a $1.25 billion investment of fresh funding at the older, higher valuation.

Kalanick's sale is part of a deal struck by a consortium led by SoftBank Group which is taking a 17.5 percent stake in the ride-hailing company, mainly by purchasing shares from early investors and workers.

The transaction marks a victory for new CEO Dara Khosrowshahi, who helped broker the deal and who will benefit from a deep-pocketed investor like SoftBank. Under the agreement, the sellers can not offload more than 58% of their shares offered initially, and Kalanick was bound by the same.

Also selling Uber shares is Benchmark, a venture capital firm, which is reportedly moving 15 percent of its holdings worth about $900 million. Back in October 2017, another Alphabet investment firm, CapitalG, said it was leading an investment in Uber's primary US competitor - Lyft, according to Fortune.

Ousted Uber CEO and cofounder Travis Kalanick was always filthy rich on paper.

Uber also is being sued by Google's self-driving auto company, Waymo, which alleges that Uber stole its proprietary tech when it bought self-driving truck company Otto. But once Softbank's deal with Uber is completed, management reforms will further attenuate his control. Softbank has already invested massive amounts of money in Lyft and other Uber competitors across the globe including in India and China. In September, faced with a proposal to dilute his voting power, Kalanick appointed two additional members to the board in an attempt to consolidate his control.

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