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Softbank is in talks with Uber about a massive $10 billion investment in the company, according to a report in the Wall Street Journal on Thursday.
The deal could give Japan’s Softbank as much as a 22% stake in the ride-hailing company if it is able to carry out the full investment, which would entail purchasing shares directly from the company as well as from existing shareholders looking to cash out, the report said.
Uber was last valued at $69 billion. But according to the WSJ report, Softbank is trying to convince shareholder to agree to an auction process that would price Uber shares at a discount and value the company at $50 billion.
Softbank declined to comment to Business Insider. Uber did not immediately return requests for comment.
The talks come as Uber seeks to move past nearly a year of controversy and scandals that culminated in cofounder Travis Kalanick stepping down from the CEO job in June. Last month Uber hired Expedia CEO Dara Khosrowshahi to fill the CEO slot vacated by Kalanick.
The tumultuous management changes have been accompanied by bitter infighting among different factions of company insiders and investors. Benchmark Capital, one of Uber’s largest investors, sued Kalanick in August, alleging that the Uber cofounder fraudulently obtain control of three company board seats. The lawsuit provoked a bizarre declaration of war from another high-profile Uber investor, who vowed to strike back at the “unholy alliance” of “sanctimonious hypocrites.”
A deal with Softbank would mark Khosrowshahi’s first major action since taking the reins. Negotiations began before Khosrowshahi was hired and could conclude as early as next week the WSJ reported citing an anonymous source.