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One Third Of Share Of Ex-Uber CEO Kalanick To Be Sold For $1.4 Billion: Media Reports

One Third Of Share Of Ex-Uber CEO Kalanick To Be Sold For $1.4 Billion: Media Reports
Travis Kalanick, who is the co-founder of the ride hailing company Uber and who was removed from his position as chief executive in June last year, is reported to be selling off at least two thirds of his share in the ride hailing company.
According to media reports quoting sources with knowledge of the matter, Kalanick owns 10 per cent share in Uber and the value of the anticipated sale would be around $1.4 billion.
According to the sources, about 17.5 per cent stake in the ride hailing company has been pledged to be bought by a consortium led by SoftBank Group Corp and the sale of the shares by Kalanick is part of that deal. The consortium has taken a strategy to do the share buy out by purchasing the shares of the early investors and the employees of Uber. Uber said that agreements from those shareholders willing to sell off their shares in the company have been secured by SoftBank last week and the ride hailing company expects the deal to come to an end by early this year.
Uber had been recently valued at $68 billion and the deal with the consortium led by SoftBank has valued the company at $48 billion which is approximately 30 percent less than the most recent valuation of the company. But an investment of $1.25 billion into the company would also be made by the investor consortium which has been valued at the higher value for the company.
According to the media reports, sources have said that almost half his shares were offered for sale by Kalanick. But since there is a limit on the amounts of shares that SoftBank will buy under the deal, Kalanick would be able to sell only about 29 per cent of his shares. But the interest among early shareholders to offload their shares of the company has resulted in those investors not being able to unload as many shares as they had hoped to.
The sources reportedly said that the sale of Kalanick’s shares would result in the sale of about 2.9 percent of the total share of Uber because about 10 per cent of the company shares are owned by the former CEO. The sale would generate about $1.4 billion in earnings for the former CEO.
There was no comment from a spokesman for Kalanick. There were also no comments from SoftBank and Uber.
And it would be the firsts time that the Uber co-founder would become a billionaire apart from being one on paper, by the sale. Sources said that this is the first time that Kalanick is selling shares that he holds of the company that he has been associated with over a decade.

Christopher J. Mitchell

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