Friday, August 11, 2017

"Three Uber Investors Ask Benchmark to Forfeit Board Seat"

The dysfunction is strong with this one.
From Bloomberg:
  • They say in a letter that Benchmark suit holds Uber ‘hostage’
  • Two CEO candidates are said to express dismay with legal fight
Three Uber Technologies Inc. investors said a lawsuit against co-founder Travis Kalanick was designed to “hold the company hostage” and asked Benchmark, the venture capital firm that brought the suit, to step down from the board.

The investors sent a letter Friday addressed to Benchmark, saying they opposed the suit, according to a copy reviewed by Bloomberg. The investors are Sherpa Capital’s Shervin Pishevar, Yucaipa Companies’ Ron Burkle and Maverick’s Adam Leber. They don’t hold seats on the board or a majority of the company’s stock, but the letter said they’re seeking other shareholders to add their signatures.

Battles among Uber stakeholders have spilled into public view, and the conflicts risk paralyzing the ride-hailing company at a crucial time. Uber is looking to quickly fill the vacant CEO position, while trying to boost morale, battle a trade secrets lawsuit from Alphabet Inc. and defend against well-funded rivals. At least two people in consideration for the CEO job, including General Electric Co. Chairman Jeffrey Immelt, called Uber directors expressing dismay after this week’s suit, people familiar with the discussions said....MORE
"Scoop: Benchmark Capital Sues Uber's Travis Kalanick for Fraud"—UPDATED