A billion dollar bonanza for Uber's ousted founder and CEO. A source telling Reuter's that Travis Kalanick is selling 29% of his holdings to SoftBank, which has been scooping up private shares in the ride hailing company over the past few weeks. Reuter's Leanna Baker in San Francisco says Kalanick was angling for an even bigger pay day.
>> He actually wanted to sell even more, up to half of his shares. But because the deal with SoftBank was oversubscribed with so many early employees and other share holders and Uber offering to sell, SoftBank was only able to buy a portion of what was offered to them.
Kalanick who owns 10% of Uber before this sale, had said that he would never sell shares in the company, but SoftBank's offer was too good to refuse. They valued early shares at $48 billion, and he will reap a nice sum of $1.4 billlion from the sale making him a billionaire not just on paper for the first time.
It's never a great sign when a founder in a company sells such big chunk of their shares, but UBER under the management is not being overseen by Kalanick anymore although he is on the board.>> The UBER investment follows a year of troubles for the company. Ranging from federal criminal investigations, to accusations of sexual harassment in the work place.
Kalanick wasn't the only one keen to unload his shares, the source saying that other investors also failed to Sell as much of their stake as they would have liked. The SoftBank deal offers investors and employees what could be their last chance to sell shares, before Uber's long awaited IPO next year.