This investment in the ride-hailing company would be done by two prominent investing companies- SoftBank Group and Dragoneer Investment Group.
If completed, the firm plans to use the funds to expand its business further as it faces increasing competition at home and overseas.
A day after Uber said that it has agreed to SoftBank's multibillion dollar investment, the Japanese conglomerate said that it was still only considering the investment and that there was no final agreement at this stage, according to a report in Reuters.
The money would help Uber to expand and invest in technology.
SoftBank also owns pieces of ride-hailing companies around the world, including Didi Chuxing in China, Ola in India, Grab in Southeast Asia and 99 in Brazil. Softbank will buy Uber shares using a process known as a tender offer that completes in a month. During the negotiations, former CEO and co-founder Travis Kalanick also put in a condition that Benchmark put the lawsuit against him on hold, something that the investor eventually gave in to.
In turn, Kalanick must receive majority board approval should he want to replace the board seats over which he has control. With so many scandals, issues and controversies, Uber need this investment. Kalanick appointed them in September without first consulting with the board. The two-layer investment done by the group would make their investments in the company at this valuation and the other process of purchasing of the shares would be done at a different valuation which would be comparatively lesser than this one.
Since that meeting, SoftBank, Uber and Uber's early investors have haggled over deal terms. In addition, the consortium will purchase up to US$9 billion worth Uber stocks from existing shareholders.
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