Uber moves closer to $ 10 billion in Softbank deal

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Uber has struck a deal that could lead to a large investment by a consortium led by conglomerate Japanese Softbank and the San Francisco group, Dragoneer.

The size of the potential investment were not disclosed, but reports say it could be up to $ 10 billion (£7.6 billion).

The ride-hailing company said that the money would fuel Uber’s expansion and investments in technology.

But it could transform its corporate structure and see a listing by 2019, if the deal goes ahead.

“We have entered into an agreement with a consortium led by SoftBank and Dragoneer on a potential investment,” Uber said.

“We believe this agreement is a strong vote of confidence in Uber’s long-term potential.”

If completed, the company intends to use the funds to expand its business further how to deal with increasing competition at home and abroad.

As well as increase its investment in technology, Uber said it would strengthen its corporate governance.

That could help bring stability to the world’s most valuable start-up, after a year of scandals, internal strife and the departure of the former chief executive Travis Kalanick in the month of June.The Early adopter

Softbank, the Japanese telecommunications and technology giant, has declined to comment on the investment potential when contacted by the BBC.

However, Softbank chief executive Masayoshi Son said last week that “if we make an investment in Uber, or not, but we have not yet decided.”

He said that an agreement would depend on “the prices and the terms and conditions”, as most of Softbank’s investment can be used to purchase shares to current investors.

The purchase of the existing shares would reportedly allow Softbank to take a 14% stake in Uber, while $ 1 billion has been set aside to buy new shares.

Mr. Son added that while Uber is grappling with “problems of management”, who believed that he was still a “good company”.

Sources told the BBC that it could take up to a month for the investment deal to be wrapped up.

Once completed, it would mark the latest in a series of overseas investments by Softbank, including:
the purchase of a $3 billion stake in the New York start-up WeWork in the month of August

the purchase of robot-maker Boston Dynamics by Google for an undisclosed figure

buy UK technology company ARM Holdings, the $32bn in 2016
the purchase of a $22bn controlling stake in US telecoms firm Sprint in 2013

SoftBank has not revealed how much money should be invested in Uber would come from his technology-focused Vision of the Fund, which is more than $93bn at his disposal.

Mr Son is known to have an eye for the potentially transformative industries and trends. He was an early investor in Alibaba and owns almost 30% of the Chinese e-commerce giant’s shares.