SoftBank agrees to a multi-billion dollar investment in Uber

Uber has confirmed that SoftBank has agreed upon a multi-billion investment in the ride-hailing company bringing months-long negotiations closer to their end.

“We’ve entered into an agreement with a consortium led by SoftBank and Dragoneer on a potential investment. We believe this agreement is a strong vote of confidence in Uber’s long-term potential,” Uber said in a statement. “Upon closing, it will help fuel our investments in technology and our continued expansion at home and abroad, while strengthening our corporate governance.”

Bloomberg says that SoftBank, along with Dragoneer Investment Group and General Atlantic, will directly invest $1 billion into Uber at a nearly $70 billion valuation. In addition, SoftBank will purchase up to $9 billion in Uber stock from existing Uber shareholders.

The Uber board first agreed more than a month ago to bring in SoftBank as an investor and board member, but negotiations have been slowed by ongoing fighting between Benchmark and Kalanick. Now, if the deal gets done, investor Benchmark Capital has agreed to drop its lawsuit against former CEO Travis Kalanick. It will also see Kalanick’s influence at the company wane, per corporate governance changes approved last month that the SoftBank investment required.

Though this is major development, it doesn't mean the deal will actually be consummated. Instead, SoftBank now will propose a price at which it would buy stock from eligible Uber shareholders, who would then have 30 days to tender.

The deal will be a turning point for the company, which has had a difficult year with hundreds of legal battles, including a patent lawsuit with Alphabet’s self-driving car division, and public outcry about its company culture.