SoftBank deal ensures limit on Kalanick’s power

SAN FRANCISCO/LONDON • SoftBank Group Corp. has overcome a major obstacle to its planned multi billion-dollar investment in Uber Technologies Inc. The Japanese firm agreed to block any attempts to elevate Travis Kalanick, Uber’s controversial former leader, back to the company’s top ranks, according to people familiar with the discussions. Venture capital firm Benchmark, which led Kalanick’s ouster in June, has sought a guarantee in writing from SoftBank that it would reject reappointing Kalanick as chief executive officer and block his appointment as chairman of the board or head of one of its subcommittees, said the people.

There have been no public proposals like this so far, but Kalanick has privately expressed interest in helping the company in some capacity, said the people, who asked not to be identified because private negotiations are ongoing. Kalanick still retains some power over Uber through his control of three board seats, though two of those remain unfilled.

The SoftBank-led investment in Uber could be the largest private stock sale in history — or it may collapse amid continued infighting. One prospective investor in the deal, Chinese ride-hailing company Didi Chuxing, has walked away, according to people familiar with the matter.

SoftBank and investment firms General Atlantic and Dragoneer Investment Group are still in active talks with Uber. Together, the firms expect to invest at least US$1 billion in Uber at a US$69 billion valuation, while buying as much as US$9 billion in shares from existing investors.