San Francisco: Uber Technologies Inc. shareholders and its board, led by early backer Benchmark, have discussed selling some of their shares to SoftBank Group Corp. and other potential investors, people familiar with the matter said. The talks represent a major turning point for the company.
It has amassed more than 500 investors who fought to own a piece of the world’s most-valuable startup. The fact that some of the earliest backers now want to reduce their stakes suggests the scandals and other troubles this year have taken a toll. The deal could include an injection of new money into the ride-hailing startup, the people said. They asked not to be identified discussing private deliberations.
It’s unclear what valuation those shares would carry or how much may be sold. Any private share sale like this would need to be approved by San Francisco-based Uber’s board. Uber’s former Chief Executive Officer Travis Kalanick, who remains on the board, didn’t learn about Benchmark’s effort to sell early shares until recently, two people familiar with the matter said.
Kalanick has often opposed allowing early shareholders to sell their stakes, though the board has allowed occasional exceptions. Even though Benchmark led an investor revolt against.
