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January 5, 2018

travis kalanick to sell 29% of his uber stake, worth $1.4billion

Former Uber cofounder Travis Kalanick  is all set to sell around 29% of his Uber stake to Softbank in the process making him richer $1.4billion according to Bloomberg post today. The former Uber Cofounder remains one of the wealthiest people in the world on paper.However  post his stake sale, Travis Kalanick would become an actual billionaire for the first time.

Interestingly during a Vanity Fair’s 2016 New Establishment Summit he boasted and touted the fact that he had “never sold a single Uber share which was an expression, of his own faith in the company’s future.

Reports indicate that the former Poster boy  and cofounder of Uber Travis Kalanick had reportedly offered to offload even more of his share which was as much as 50 percent, the most a board member was allowed to sell in the transaction with SoftBank and its consortium of investors, who have agreed to buy equity in the company at a lower $48 billion valuation. But that figure was reportedly scaled back due to the large volume of investors attempting to sell

The SoftBank deal, which is expected to close later in January, will limit Kalanick’s remaining influence at Uber via a number of corporate governance reforms, though he’ll remain an Uber board member.

Kalanick was pressured to resign last year after the company became mired in legal woes and government investigations into the way it conducts how it does business.

Uber has come under increasing criticism in the last 2 years and has been rocked by a steady stream of  workplace and sexual harassment including gender discrimination scandals and negative publicity in recent years, including revelations of questionable spy programs, a high-stakes technology lawsuit, and embarrassing leaks about executive conduct including digging up dirt on journalists and spreading personal information of a female reporter who was critical of the company.Uber was forced to pay $20m to settle allegations that the company duped people into driving with false promises about earnings.

The Federal Trade Commission claimed that most Uber drivers earned far less than the rates Uber published online in 18 major cities in the US. 

More PR disasters followed led by a A #DeleteUber campaign which went viral after the company lifted surge pricing during a taxi protest at a New York airport against Donald Trump’s travel ban. A total of roughly 500,000 users reportedly deleted accounts after the scandal erupted.

Uber also faced lawsuits from Waymo, the self-driving car company owned by Google’s parent Alphabet which accused Uber of “calculated theft” of its technology. The suit, was a fatal setback for Uber’s autonomous vehicle ambitions, alleged that a former Waymo employee, Anthony Levandowski, stole trade secrets for Uber which later fired the engineer.

Travis  also clashed with Benchmark, one of the company’s earliest and biggest investors, which is also selling part of its stake