Uber, a ride-hailing service firm agreed to accept the investment from Japanese giant investor Softbank. The company announced the acceptance of investment on October 3, 2017.
The investment is expected to weigh in $1 billion to $1.25 billion. Appointment of new board members Ursula Burns and John Thain played a significant part in the approval process.
Moreover, the board resolved to go public by 2019.
There were significant changes in the Uber board. The board will be expanded from 11 seats to 17 seats. Out of which, Softbank will get two, four will remain independent, and one will be assigned to an independent chairperson. Moreover, Burns and Thain will have rights to retain theirs.
Board member and former CEO, Travis Kalanick outlined the investment to be beneficial for Uber. The California-headquartered company will head toward initial public offering (IPO) in next two years. Dara Khosrowshahi, recently appointed CEO highlighted the firm would go public between 2019 and 2021.
The company has taken a huge step toward future of Uber and vision to become the world-class company. The unanimous agreement on new governance framework bodes well for company.
The deal robbed much of power from the co-founder Kalanick and other early investors. Kalanick had class B shares, which enabled him 10-to-one voting power. He no longer has that power owing to transformation of shares that gave one vote to each shareholder. However, early investors, Shervin Pishevar and Steve Russell, planned to file a class action lawsuit for stripping them of shares of voting power.
Softbank entered Uber amid a series of scandal including ban in London and investigation of withering work culture.