The agreement will not only give SoftBank a major stake in Uber - it is looking to buy up at least 14 per cent of the company - but it will help put a rest to one of the many ongoing battles for new CEO Dara Khosrowshahi.
Japanese multinational telecommunications and Internet firm SoftBank Group said in a statement that although it is considering investing into the ride-hailing company, Uber Technologies, there was "no final agreement". If the new deal is closed, the SoftBank-led consortium will own about 14 percent stake in the ride-sharing pioneer, now valued at around US$68 billion.
"We've entered into an agreement with a consortium led by SoftBank and Dragoneer on a potential investment".
SoftBank Investment Advisors and SoftBank Group Corp board director, Rajeev Misra emphasised that "by no means is our investment decided". During that process, a price will be set for the existing Uber shares.
Can You Draw the Starbucks Logo Without Cheating? Some of Uber's early investors, like the venture capital firm Benchmark, initially wanted to retain certain shareholder rights that they hold through their Uber stock, according to two of the people briefed on the discussions. The firm will also suspend the lawsuit that it filed against Mr. Kalanick, and drop the suit upon completion of the tender offer.
The Japanese tech and telecoms firm has become a prolific investor in ride sharing firms such as China's Didi and India's Ola as it works to achieve SoftBank founder Masayoshi Son's vision of a future driven by artificial intelligence and interconnected devices.
Uber is now valued at around $68.5bn (£52.4bn), but reports suggest that the stock offers would be based on a lower valuation, making the total value of the multibillion-dollar deal unclear.
"It's good that SoftBank is always positive towards investing in fast-growing companies".