Uber, one of the world’s leading cab-hailing service provider, has been in talks with Japan-based SoftBank for a potential investment. Now, the company has confirmed that Uber has sealed a multibillion dollar investment round from Japan.
However, the company has not revealed any financial details related to the deal. Sources are of the matter says that Uber has purchased shares worth $1 billion at a last private valuation of around $70 billion.
The group led by SoftBank and Dragoneer Investment Group is also planning to invest a much larger amount by buying up to $9 billion in Uber shares. It is expected to purchase more share from other shareholders as well as from employees, as it plans to acquire 14% share of the cab-hailing company.
In a statement, Uber said that the deal is a vote of confidence in the company’s potential and “will help fuel our investments in technology and our continued expansion at home and abroad, while strengthening our corporate governance.”
The move also clears the way for Uber to go public among the most valuable tech firms in the world. Under the deal, the company’s initial public offering (IPO) will take place before the end of 2019.
A person aware of the development said that the long-awaited deal has been on table since October but was delayed by a corporate governance and legal dispute between investor Benchmark Capital and ousted CEO Travis Kalanick. Both sides ended their feud on Sunday, clearing the way for the SoftBank investment.
The deal allows early investors such as Benchmark Capital to sell some of their shares at a handsome profit. But there will likely be heavy arguments about the shares’ worth in the coming weeks.