Uber co-founder and former CEO Travis Kalanick is about to go from a billionaire on paper to a billionaire in real life. However, the investor consortium is also making a $1.25 billion investment of fresh financing at the older, higher appraisal.
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. However, as Bloomberg states, he later had to withdraw to be in line with an agreement between Uber and the consortium. This may be one of the reasons why Kalanick is selling his shares despite sitting on the board of directors.
GV, a venture capital firm of Alphabet, also sold up considerably less than half of its stake in Uber.
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.
In early 2017, Uber was hit with accusations of harbouring a sexist work environment in a blog post by former engineer Susan Fowler.
Kalanick is known for his aggressive management tactics. 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.
Japanese conglomerate SoftBank announced a deal with Uber last week. SoftBank had been hinting of taking its billions of dollars and global influence to back rival Lyft. He's reportedly selling his shares to SoftBank Group and a group of investors. Kalanick did not want competitors to get ahead. Kalanick said at the time, "I love Uber more than anything in the world and at this hard moment in my personal life I have accepted the investors request to step aside so that Uber can go back to building rather than be distracted with another fight".