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Uber Closes $1.2-Billion Deal With SoftBank

Softbank DealUber has officially closed a $1.25 billion primary investment deal with a group of investors led by the Tokyo-based SoftBank.

(Read: Uber’s Big SoftBank Deal Has Officially Closed)

The deal between Uber and the consortium came together late last month, with the group valuing Uber at $48 billion.

The consortium’s valuation was a huge difference from Uber’s previous value of $69 billion.

The consortium that includes Dragoneer Investment Group will have a 17.5% stake in the ride-hailing giant.

A BBC report said the group led by SoftBank is purchasing $1.25 billion in new shares and a big number from existing shareholders that included Uber co-founder Travis Kalanick, who resigned as chief executive in June last year.

Management Changes

TechCrunch said the Uber-SoftBank deal would see payments for secondary sales processed and distributed throughout Thursday and management changes that Uber had agreed to as part of the deal would already take effect.

The site also said Kalanick cements his status as a billionaire after selling 29 percent of his total stake in Uber to the consortium.

(Read: Former Uber CEO Travis Kalanick Just Became an Actual Billionaire With $1.4 Billion in Cash)

The consortium had offered to buy the shares of existing Uber shareholders at $33 per share.

Great Outcome

In a statement after the official closure of the deal, Uber said: “This is a great outcome for our shareholders, employees, and customers, strengthening Uber’s governance as we double down on our technology investments and continue to bring our services to more people in more places around the world.”

On the other hand, SoftBank Investment Advisers CEO and SoftBank Group Director Rajeev Misra said they are “very pleased to have successfully closed the Uber investment and appreciate the support and professionalism of the Board, management team and shareholders who made this transaction possible.”

Uber has a very bright future under its new leadership. It is now part of a wider SoftBank network ranging from Sprint to WeWork. I look forward to SoftBank helping Uber become an even bigger global success.”

What’s Next?

Uber has officially closed an investment deal with a group of investors led by the Japanese conglomerate SoftBank.

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