SoftBank now Uber's largest shareholder as deal closes

SAN FRANCISCO, Jan 19 (Reuters): A group of investors led by SoftBank Group Corp closed a deal with Uber Technologies Inc on Thursday, making SoftBank the largest stakeholder in the ride-services firm and providing a much-needed boost to controversy-ridden Uber.

The deal includes a large purchase of shares from existing Uber investors and employees at a discounted valuation for the company of $48 billion, a 30 per cent drop from Uber's most recent valuation of $68 billion. These secondary stock sales will be completed by the end of the day Thursday on the Nasdaq Private Market, an Uber spokesman said.

The investor group, which is co-led by SoftBank and Dragoneer Investment Group and includes Sequoia Capital, has also completed a $1.25 billion investment of fresh cash at the other, higher valuation, the spokesman said.

In all, the investors will take a stake of about a 17.5 per cent in Uber, with SoftBank keeping 15 per cent, becoming the company's largest shareholder. The investment triggers a number of governance changes at Uber, including the addition of new board members, which take effect immediately.