Uber's Travis Kalanick to sell $1.4 billion stake to Softbank
Travis Kalanick is planning to sell 29 percent of his shares in Uber in a deal which would net the former CEO roughly $1.4 billion.
As reported by Bloomberg, people with knowledge of the matter said the shares are destined to go to Softbank and a consortium of investors which plan to buy equity in the ride-hailing service worth $48 billion.
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Kalanick left his post as chief executive of the company last year following a family tragedy and a stream of scandals at Uber.
The executive himself was accused of being unprofessional, Uber was accused of encouraging a toxic work culture and is currently in the middle of a lawsuit with Waymo over the alleged theft of intellectual property, regulators are less-than-impressed with Uber's operational tactics and a slew of sexual harassment allegations led to a number of employees being fired.
The former CEO owns approximately 10 percent of the company and has long asserted he has never sold any shares in Uber.
However, the publication reports that originally Kalanick offered to sell half of his stake -- but this was reduced to 29 percent due to sale limits already in place between himself and the Softbank investors.
Softbank and the investor consortium are attempting to gather roughly 17.5 percent equity in Uber, mainly through purchasing shares from early investors. The land grab highlights a shuffle in investment, stakes, and power before a planned IPO which is due to take place in 2019.
See also: How to book an Uber ride for free
When Softbank's investment plans are complete, Uber's board is expected to rise from 11 members to 17 members, with a number of fresh executives appointed by Softbank and its consortium.
It is reported that the shift will also result in the suspension of a lawsuit brought forward by another major investor, Benchmark, which claims Kalanick is attempting to return as CEO -- and this future would cause untold harm to shareholders, employees, drivers, and customers.
A spokesman for Kalanick said the lawsuit was "without merit."
Uber declined to comment.
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