As UBER said ‘Peace Deal’ confirmed $10 billion with Softbank

Now Softbank will be part of Uber, with news confirming of $10billion between both also with consortium of investors. IT was referred as ‘peace deal’ so that ugly scenes of boardroom war at Uber could be settled soon end, as it was multibillion dollar tender offer of Softbank and other investor where employees to sell up to half their stock in car hailing giant where the ongoing reports two days backs said that two side had each agreed to give up some leverage to come to terms after continued infighting over the last few weeks had continued to delay an effort to move forward with new governance. However with the Japanese giant Soft bank is also an investor in Bengaluru- based cab aggregator OLA.

“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.”

However with this deal  Softbank is believed to pump in $10billion into the company, with $1billion will directly  cash and $9 billion by buying existing shares and also sources revealed with this Travis controlled in the company will be reduced.

Finally and officially confirms Uber San Francisco –based cab aggregator, the deal with Soft Bank to select media houses. This will certainly affect the Travis’ position while Indian cab market.

As the total ownership by Softbank and Dragoneer is said to be 14 %, but actual valuation at which this shares will be bought is unknown. However Travis will not be able to take apex position, control of CEO but will continue significant influence over the company, as board of directors Travis has the power to appoint two extra seats but more that will need majority approval from board. Uber‘s current valuation is said to be close to $60 billion. Since Travis step down and Dara Khosrowshahi there have been several sources that state has been looking for reestablishment. During the course the market  seen with mixed views like Masayoshi Son, CEO Softbank had even told press that it might not invest in Uber but could also look at investing in its’ competitors while other sources said that Soft bank had negotiated for reducing the power of Founder and former Uber CEO Travis. Anyways with confirmation of this deal, Benchmark one of the key investor in Uber will certainly drop lawsuit charges against Travis, while current deal also labels as an extension of Uber’s Series G round. One solid came up thing  of Uber seen through this deal is that it has countless loyalist in store while being strong market product as well global presence which is positive for brand to sustain for the time at least. Though this year has been Uber’s horrible year with former CEO and said cheater Travis cornered never before, with #delete Uber campaign, Susan Fowler’s blog post, Waymo lawsuit, hell or grey ball, with medical record saga and so which point hold Uber maximum problem can’t be deter. Krish Seshadri who has earlier worked as senior executive for Facebook and Zynga in Valley and in India also refers above problem which Uber faced contributed as “ Legal troubles and business problems are always part of business, what really went wrong with Uber was the lack of  proper leadership that (should have0 built a company solid with cultural values”.

However much interesting is that this transition will affect Indian cab war dynamics, as Softbank which will now stake in Uber, also have s stake in Bengaluru based unicorn cab aggregator OLA. As per facts India OLA today is hottest unicorns in India valuing at close to $4billion thought Uber ruling globally valued at $60 billion. Few years continuous bull fight in Indian market seen between OLA and Uber to top India.As per analyst says” over the past 6 to 7 years Indian market has seen a sea change with growing traffic troubles the need for cab aggregators and bike taxis is fast growing in India. According to all our reports the consumer demand had been consistently growing. Considering few recent facts of Uber that it has lot of mixing dish with last year it conceded a defeat of sorts in China, selling its subsidiary to Didi while Didi funding of 5.5 billion this year was led by Silver Lake Kraftwerk and was joined by existing investors Banks of Communications Co. China Merchants Banks Co. and So called Soft Bank. Reports of December 2015 OLA, Grab taxi, Lyft and Didi Kuaidi had formed a global alliance to take on Uber in India.

So this above important fact Uber now needs to consider while it has lot scope in India with vast market. How Uber will deal in India will altogether different scenario which following month will reveal as per PTI.