SoftBank has been trying to get in with Uber for quite some time now, looking to invest in the company which would in turn give SoftBank a slice of the company. Today, that investment deal finally closed, according to Uber. SoftBank has invested around $1.2 billion in Uber. The company provided a statement in regards to the investment deal closing, "we're proud to have SoftBank, Dragoneer and the entire consortium in the Uber Family. This is a great outcome for our shareholders, employees and customers, strengthening Uber's governance as we double down on our technology investments and continue to bring our services to more people in more places around the world."
Uber also confirmed that this deal between the two companies will see payments for secondary sales processed and distributed throughout the day on Thursday. This also means that the governance changes that Uber had agreed to for this deal, goes into affect today, and finally, this means that Travis Kalanick, Uber's founder, is now officially a billionaire. Seeing as Kalanick sold around 30% of his stake in Uber. What that means for SoftBank is that it now has the largest stake in the company. Which is going to set up Uber quite nicely for its IPO come next year. As SoftBank will also have new board positions in its possession.
While Uber is not yet a public company, it is planning on going public at some point in 2019, and the company has a lot of work to do before then. Of course, having SoftBank as a major shareholder in the company is definitely going to help with that. Uber is currently the largest ride-sharing company around, and the company would be the first to go public, seeing as Lyft hasn't done it just yet, and the other competitors out there are not large enough to go public just yet. It'll be an interesting 2018 and 2019 for Uber, as it gears up for that IPO. It also had an interesting 2017, but not in a good way. With its self-driving car unit being under scrutiny for Anthony Lewandowski supposedly taking Waymo's LiDAR plans over to Uber before leaving the Alphabet company. Putting Uber in court with Waymo for most of 2017. Not to mention the company's founder had to leave the company, and also sell a substantial part of his ownership in the company.