{"id":373237,"date":"2017-11-13T11:41:40","date_gmt":"2017-11-13T11:41:40","guid":{"rendered":"http:\/\/citifmonline.com\/?p=373237"},"modified":"2017-11-13T11:41:40","modified_gmt":"2017-11-13T11:41:40","slug":"uber-set-to-sell-10bn-stake-to-softbank","status":"publish","type":"post","link":"https:\/\/citifmonline.com\/?p=373237","title":{"rendered":"Uber set to sell $10bn stake to Softbank"},"content":{"rendered":"

Uber has struck a deal that could lead to a huge investment by a consortium led by Japanese conglomerate Softbank and San Francisco group Dragoneer.<\/p>\n

The size of the potential investment has not been disclosed, but reports say it could be up to $10bn (\u00a37.6bn).<\/p>\n

The ride-hailing company said the money would fuel Uber’s expansion and investments in technology.<\/p>\n

But it could transform its corporate structure and see a share listing by 2019, if the deal goes ahead.<\/p>\n

“We’ve entered into an agreement with a consortium led by SoftBank and Dragoneer on a potential investment,” Uber said.<\/p>\n

“We believe this agreement is a strong vote of confidence in Uber’s long-term potential.”<\/p>\n

If completed, the firm plans to use the funds to expand its business further as it faces increasing competition at home and abroad.<\/p>\n

As well as boosting its investments in technology, Uber said it would strengthen its corporate governance.<\/p>\n

That could help bring stability to the world’s most valuable start-up after a\u00a0year of scandals,\u00a0infighting and the\u00a0ousting of former chief executive Travis Kalanickin June.<\/p>\n

Early adopter<\/strong><\/p>\n

Softbank, the Japanese telecommunications and technology giant, declined to comment on the potential investment when contacted by the BBC.<\/p>\n

However, Softbank chief executive Masayoshi Son said last week that “whether we make an investment in Uber, or not, is not decided yet”.<\/p>\n

He said a deal would depend on “pricing and the terms and conditions” as most of Softbank’s investment would be used to buy out shares from current investors.<\/p>\n

Buying the existing shares would reportedly allow Softbank to take a 14% stake in Uber, while $1bn is said to have been set aside to buy new shares.<\/p>\n

Mr Son added that while Uber was struggling with “management issues”, he believed it was still a “good company”.<\/p>\n

Sources told the BBC it could take up to a month for the investment deal to be wrapped up.<\/p>\n

Once completed, it would mark the latest in a series of overseas investments by Softbank including:<\/p>\n