Sunday, November 12, 2017

"Uber’s “Peace Deal” is ready for signing, allowing SoftBank tender offer to proceed"

From recode, Nov. 12:

Employees will be able to sell half their stock
A “Peace Deal” to settle an ugly boardroom war at Uber is expected to be signed today or tomorrow. If all goes well — and this is a big if still since, well, Uber — it should clear the way for a multi-billion-dollar tender offer by SoftBank and other investors that would allow employees to sell up to half their stock in the car-hailing giant.

Bloomberg first reported on the wide-ranging agreement that was struck this weekend to bring to an end to the acrimony between former CEO and Uber co-founder Travis Kalanick and its major investor Benchmark. 

Sources confirmed that the two sides 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 reforms.

“It would have happened sooner, but the paranoia on both sides never let up,” said one source close to the situation, who noted that an ultimatum to end the investment move by other board members and new Uber CEO Dara Khosrowshahi at a meeting yesterday finally broke the impasse. “It took entirely too long, but we have an agreement.”

Under the deal — which has not yet been signed — Kalanick will maintain his own seat on the board and also the right to appoint two other seats. He had done that unilaterly last month, causing much consternation. But those two seats will be subject to majority board approval in the future....MORE