SoftBank and Dragoneer agreed to invest billions in Uber

Japanese technology group SoftBank has reached a deal with Uber to invest billions in the globally renowned ride-hailing giant. Uber has confirmed the investment in a statement, yesterday without giving details.

According to sources revealed by Techcrunch, SoftBank Group will buy about $1 billion worth of new Uber stock, then will offer to purchase shares from investors and Uber employees with the goal of reaching a 14 percent stock share in the company.

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Uber Technologies Inc. is currently valued at $68.5 billion, but stock offers will be based on a lower valuation, so it’s unknown just how much the total multibillion-dollar deal will be worth. The year 2017 has been devasting for Uber except for this deal, as Uber has faced several lawsuits during this year.

According to the statement by Uber,

“We’ve entered into an agreement with a consortium led by SoftBank and Dragoneer on a potential investment. We believe this agreement is a strong vote of confidence in Uber’s long-term potential. Upon closing, it will help fuel our investments in technology and our continued expansion at home and abroad, while strengthening our corporate governance.”

SoftBank Group and Dragoneer Investment Group with their consortium are also planning to invest a much larger amount by buying up to $9 billion in Uber shares from employees and other shareholders.

This deal was long-awaited as the rumors about the deal started circling from October but delayed due to a corporate governance and legal dispute between investor Benchmark Capital and ousted CEO Travis Kalanick. Both sides ended their feud on Sunday, clearing the way for the SoftBank to invest.

Uber has been the center of lawsuits and negative press for the most part of the year and even sexual harassment case at Uber will be the inspiration for an upcoming film.