Uber announced on Sunday that Japanese tech investor SoftBank had agreed upon a deal to invest in the company.
Uber hasn’t disclosed exactly how much SoftBank will invest, but Reuters reports that Uber will receive $US1 billion (£765 million) in funding and SoftBank will purchase $US9 billion (£6.8 billion) of existing shares.
The deal between the two companies was reached after months of conflict on Uber’s board. Investment firm Benchmark Capital was an early Uber investor but sued Uber founder and former CEO Travis Kalanick. The investment deal with SoftBank will likely cause Benchmark to drop its suit, Reuters reported.
SoftBank CEO Masayoshi Son said earlier this month that is was possible SoftBank could pull out of its deal with Uber and instead back its largest rival, Lyft. “Depending on the price and conditions, it is wholly possible we could shift our investment to the other main company Lyft. It is wholly possible,” he reportedly said.
Here’s the statement Uber sent on Sunday:
“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.”