Uber: Softbank takes large stake in ride-hailing firm

Travis Kalanick whose departure from Uber showed the cost of a toxic company culture

Still, the price is at a 30 percent discount to the most recent valuation of $68 billion.

SoftBank's bid to purchase a sizable stake in ride-hailing titan Uber has succeeded. The company still faces numerous legal challenges, including a massive trade secrets lawsuit with Alphabet's self-driving auto unit Waymo and multiple government investigations into potentially illegal business practices.

The shake-up was supported by Uber's new chief executive Dara Khosrowshahi, who has said he hopes to list Uber's shares publicly in 2019.

As part of the agreement, SoftBank will obtain two seats on Uber's expanded 17-person board, which still includes former CEO Travis Kalanick.

More than anything, however, SoftBank's presence on the board of Uber should help bring an end to the in-fighting that has plagued the company all year. While we have yet to learn which investors have cashed out for the price of about $33 a share, Thursday's result is the reward for years of drama at a company that nevertheless saw astronomical growth since its founding in 2009.

Uber hasn't had a great year.

Uber now has a powerful strategic partner in SoftBank, the Japanese telecom giant that is investing hundreds of billions of dollars in technology. The WSJ's reporting suggests that SoftBank's successful offer valued Uber at $48 billion.

The deal will also benefit Uber's employees, drivers and riders, said Chris Sacca, founder and head of Lowercase Capital, a major Uber shareholder that did not sell shares in SoftBank's tender offer.

"We have tremendous confidence in Uber's leadership and employees and are excited to support Uber as it continues to reinvent how people and goods are transported around the world", Rajeev Misra, chief executive of SoftBank Investment Advisers and a director at SoftBank Group Corp., said in a statement.

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