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Uber Accepts $10 Billion Investment, Will Limit Kalanick Influence

Uber has accepted an investment of up to $10 billion and will limit the control of former chief executive Travis Kalanick.

Bloomberg reports that Uber has agreed to let SoftBank Group Corp and other firms invest up to $1 billion in the ride-hailing service. The companies will then proceed with a tender offer in coming weeks to purchase up to $9 billion in shares from existing investors.

In a statement, Uber said the investment will secure its longevity.

“We’ve entered into an agreement with a consortium led by SoftBank and Dragoneer on a potential investment. We believe this agreement is a strong vote of confidence in Uber’s long-term potential. Upon closing, it will help fuel our investments in technology and our continued expansion at home and abroad, while strengthening our corporate governance.”

As part of the deal, Uber shareholder Benchmark Capital will drop a lawsuit it has against Travis Kalanick. The former chief executive will retain his position on the firm’s board of directors and keep his power to appoint two extra seats. However, further changes he may want will require a majority approval from the board.