SoftBank’s reported $10bn investment in Uber has hit a snag in the form of ex-Uber CEO Travis Kalanick and his position in the company.
According to the Wall Street Journal, citing people familiar with the matter, Kalanick’s ongoing battle with board members over the amount of power he continues to hold is in the way of the deal going through. This is despite Uber reaching an agreement in principle with a group of investors led by SoftBank in recent days.
Kalanick is said to have an issue with a provision in the deal that would mean a majority vote would be required before he could appoint any directors in the future. On top of that, Kalanick is also said to be seeking a temporary stay on his ongoing legal battle with Benchmark Capital, one of Uber’s biggest investors, or a formal guarantee the suit will be dropped after SoftBank completes its investment.
The WSJ report also claims that other investors view Kalanick’s approval on any deal as essential because some of the changes affect him personally.
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