Softbank to acquire stake in Uber, invest $10 billion
The logo of SoftBank Group Corp is displayed at SoftBank World 2017 conference in Tokyo, Japan Photograph: (Reuters)
Global transportation technology company, Uber, confirmed a deal on Sunday in which the Japanese company conglomerate Softbank will buy a stake in it.
"We've entered into an agreement with a consortium led by SoftBank and Dragoneer on a potential investment," Uber said in a statement.
The deal is said to be worth $10 billion, Bloomberg stated. The move will require changes to Uber's governance.
"We believe this agreement is a strong vote of confidence in Uber's long-term potential," the company added.
The ride-hailing giant earlier voted to overhaul its corporate governance and create incentives for the company to have an initial public offering(IPO) in 2019.
"Upon closing, it will help fuel our investments in technology and our continued expansion at home and abroad, while strengthening our corporate governance."
Softbank led by Masayoshi Son wanted to invest in the US-based ride-sharing app for around $1billion for a 14% stake for sometime.
SoftBank had said in May it had agreed to invest $5 billion in China's ride-hailing firm Didi Chuxing, valuing Didi at more than $50 billion.