Although it is one of the most successful projects of Silicon Valley in recent years, Uber has been rocked in 2017 by a series of scandals

A consortium led by the Japanese telecommunications and Internet company SoftBank reached an agreement with Uber to buy a controlling stake of nearly 15 percent of the private transport company.

Mid-November, SoftBank and Uber reached an agreement under which the Japanese group would enter IGNORE INTO the private shipping company by injecting $1 million dollars along with other investors and acquiring shares by another $9 million.

Although it is one of the most successful projects of Silicon Valley in recent years, Uber has been rocked in 2017 by a series of scandals, notably a demand by Alphabet, the Google matrix, for the alleged theft of information about their vehicles autonomous. In addition, the company was engulfed in a war for power that caused the resignation of its co-founder and ex advisor delegate, Travis Kalanick, sued for fraud and also splashed with accusations of sexual harassment and discrimination.

SoftBank justified its offer downward on the problems faced by Uber in recent months, as multiple claims filed against the company. Its new CEO, Dara Khosrowshahi, implemented a series of changes in the policies of the company hence the agreement with the Group of investors including Softbank, Dragoneer Investment, TPG, Tencent and Sequoia Capital is a great closing for the company. The agreement between the two companies would also include the inclusion of Uber stock exchange for 2019.

Uber seems to still be losing more than $1 million dollars per quarter and in need of a new injection of cash. The investment of the new consortium lowers it, because it is in two tranches and the second is at lowest prices. According to Financial Times, with details of the operation, Softbank and its partners acquired a package of new shares by 1,250 million, i.e. a cost posting the full value in 70,000 million. But it acquires another stretch to 32,93 dollars per share, i.e., with a discount of 30% with respect to the first section.

SoftBank will pay $ 7.7 million for 15% of the shares of Uber through the purchase of existing titles and newly issued more injection of $1 million dollars to the transportation company.  Uber also added six new directors to its Board of Directors, including two of SoftBank for a total of 17 members. Meanwhile, other participants in the Consortium as Dragoneer, Tencent, TPG and Sequoia invest jointly about $1 million of dollars by 2.5% of shares in the U.S., so at the end of the transaction the Consortium will control 17.5% of Uber.

“We have great confidence in the leadership and employees of Uber,” said Rajeev Misra, Managing Director of SoftBank Vision Fund, noting that the agreement will close in January.

The CEO of Softbank, Masayoshi Son, had admitted on several occasions the interest of the company by partnering with Uber, in line with the technological Japanese investments in other emerging companies that provide transportation services as the china Didi Chuxing Technology, india wave or the singapuresa Grab.

Latin American Post |  Diana Ramos

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