This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at http://www.bbc.co.uk/news/business-42740680

The article has changed 8 times. There is an RSS feed of changes available.

Version 4 Version 5
Uber agrees $8bn investment deal with SoftBank Uber co-founder Travis Kalanick a billionaire after $8bn investment deal
(about 1 hour later)
A group of investors led by SoftBank is taking a large stake in Uber, in a deal that will leave the ride-hailing firm's co-founder an official billionaire. Uber co-founder Travis Kalanick will officially become a billionaire, after investors agreed to take a large stake in the ride-hailing firm.
Uber said it has closed the deal with the group, which is purchasing $1.25bn (£900m) in new shares and a large number from existing shareholders. A consortium led by Japan's Softbank is buying a chunk of the company from existing shareholders as well as new Uber shares in an $8bn ($5.8bn) deal.
Uber co-founder Travis Kalanick, who stepped down as chief executive in June, is reportedly one of the sellers. Mr Kalanick, who stepped down as chief executive in June, is selling $1.4bn worth of stocks, it is widely reported.
The consortium will have a 17.5% stake in the company. While he had long been worth billions on paper, this deal cements his wealth.
The transaction is valued at more than $8bn. As part of the deal, Uber's board has expanded from 11 to 17 directors, with Softbank's investor group taking two of the new seats. Mr Kalanick was driven out of the top job by a series of scandals, but his ties with Uber remain strong.
The shake-up comes as Uber concludes a difficult year, in which it faced a sexual harassment scandal, investigations by regulators and a lawsuit over allegedly stolen technology. He remains a director at the company and is offloading less than a third of his holding - meaning he still has a stake that's currently worth another $3bn.
It also continues to experience steep losses. A billionaire, but with reduced powers
In a statement on Thursday, Uber called the deal 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". Dave Lee, BBC North America technology reporter
The consortium includes Dragoneer Investment Group and SoftBank, a Japanese conglomerate that has been making a series of increasingly high-profile technology investments.
The transaction will leave SoftBank with about 15% of Uber, expanding its transportation holdings.
The firm has also backed China's Didi Chuxing and Southeast Asian taxi-hailing app Grab, among other companies.
Details of the investment
The investment, which was months in the making, has two parts.
The consortium is buying $1.25bn in new shares in a deal that values Uber at about $70bn.
Existing Uber shareholders were also offered about $33 per share in a deal that valued Uber at about $48bn.
That price marks a discount to Uber's most recent fundraising round, but for some of the firm's early investors could provide a big payoff.
Mr Kalanick, who had owned about 10% of Uber, is reported to be selling 29% of his shares, cashing in on about $1.4bn. While he had long been worth billions, the deal cements his status as a billionaire.
Analysis - Dave Lee, BBC North America technology reporter
If you believe in karma, look away now.If you believe in karma, look away now.
Uber's chief executive Travis Kalanick is a man who presided over a rampant culture of sexism, the covering up of a major hack, spying on journalists and, allegedly, the theft of trade secrets from Google. To name but a few. Travis Kalanick is a man who presided over a rampant culture of sexism, the covering up of a major hack, spying on journalists and, allegedly, the theft of trade secrets from Google. To name but a few issues.
And by close-of-play on Thursday, he'll officially be a billionaire (he was only one on paper before). And now he'll officially be a billionaire.
On the other hand, the finalising of this massive deal will see Mr Kalanick's powers reduced. He's selling 29% of his shares, and Softbank, the Tokyo-based group which seems to be taking a stake in every bright idea in Silicon Valley, will gain two seats on Uber's board.On the other hand, the finalising of this massive deal will see Mr Kalanick's powers reduced. He's selling 29% of his shares, and Softbank, the Tokyo-based group which seems to be taking a stake in every bright idea in Silicon Valley, will gain two seats on Uber's board.
The cash injection, of $1.25bn, will offer both a boost and a cushion as Uber looks to continue its loss-heavy strategy to grow in just about every city and major town in the world. The cash injection will offer both a boost and a cushion as Uber looks to continue its loss-heavy strategy to grow in just about every city and major town in the world.
The consortium's $8bn will buy it a new 17.5% stake in Uber.
Of that $8bn, about $1.25bn is a cash investment in new shares, with the rest going to existing Uber investors.
Uber called the deal 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".
Softbank, which was already an Uber investor, said it was "very pleased" with the deal and looked forward to "helping Uber become an even bigger global success".
"Uber has a very bright future under its new leadership," said Softbank director Rajeev Misra.
As part of the deal, Uber's board has expanded from 11 to 17 directors, with Softbank's investor group taking two of the new seats.
San Francisco group Dragoneer is another key investor.
The shake-up comes as Uber concludes a difficult year, in which it faced a sexual harassment scandal, investigations by regulators and a lawsuit over allegedly stolen technology.
It also continues to experience steep losses.
SoftBank has been making a series of increasingly high-profile technology investments, backing China's Didi Chuxing and Southeast Asian taxi-hailing app Grab, among other companies.