Uber shareholders and its board, led by one of its key early backers Benchmark, have discussed selling some of their shares to SoftBank and other potential investors, a source familiar with the matter has told Bloomberg.
However, SoftBank, which recently launched a $93 billion technology fund backed by $45 million of Saudi Arabia’s Public Investment Fund (PIF) cash, has no plans to invest in Uber, a person close to the Japanese company said.
The rumour is complicated by the fact that the PIF invested $3.5 billion in Uber in June 2016.
SoftBank has backed Uber’s main rivals in India, South-east Asia and China. Some of Uber’s investors would like to see the startup cut deals with overseas competitors – as it did with Didi Chuxing in China and Yandex NV in Russia.
Uber has amassed more than 500 investors who fought to own a piece of the world’s most-valuable startup, valued at $69 billion in its first round of funding.
Uber’s former Chief Executive Officer Travis Kalanick, who remains on the board, didn’t learn about Benchmark’s effort to sell early shares until recently, two people familiar with the matter said.
Even though Benchmark led an investor revolt against Kalanick, at least three major shareholders said they were unaware of Benchmark’s effort to sell shares as of Friday morning, three people familiar with the matter said.
Further complicating the situation: One of Uber’s major late-stage investors, the Saudi Public Investment Fund, is also the largest backer of SoftBank’s new tech fund.
Uber, last valued at $69 billion, has faced a string of scandals so far this year. It lost its CEO and heads of business, policy and communications, engineering, and product.
Former U.S. Attorney General Eric Holder concluded an investigation into the company’s culture that recommended replacing Uber’s 14 values and relying on a new leader to reform the company’s culture.
The search continues for a new CEO, chief financial officer, chief operating officer, general counsel, and independent board chair.
