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WSJ: SoftBank reconsidering Uber investment due to former CEO

Published 11/01/2017, 02:32 PM
© Reuters.  WSJ: SoftBank reconsidering Uber investment due to former CEO
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  • Sources of The Wall Street Journal say SoftBank (OTCPK:SFTBY, OTCPK:SFTBF) might pull its planned $10B investment in Uber (Private:UBER) as ex-CEO Travis Kalanick continues to battle other board members over potential limitations to his power.
  • Kalanick wants SoftBank to remove a provision requiring a majority vote on any of his director appointments and wants Benchmark Capital to either agree to a stay in its lawsuit against him or a guarantee that the suit will go away after the SoftBank investment completes.
  • Kalanick, who was encouraged to resign earlier this year amid a wave of PR and legal problems, doesn’t have majority voting power but retains a great deal of loyalty at the company.
  • Benchmark later sued Kalanick for fraud due to a board expansion last summer that created three new seats. Kalanick took one of those seats when he stepped down and SoftBank wants the others as part of its deal.
  • Previously: Softbank closes in on Uber investment (Oct. 17)
  • Previously: FT: Some Uber shareholders balking at SoftBank deal provision (Oct. 20)
  • Now read: Hazelton Capital Partners, LLC: 3rd Quarter 2017 Letter To Investors

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