SoftBank acquires a 20 percent stake in Uber

A taxi is reflected in a window at the office of taxi-hailing service Uber Inc in Hong Kong China

The news outlet says ride-share pioneer Uber has agreed to sell roughly 20% of itself to a technology investment fund run by Softbank Group in a complex deal that values all of Uber at $48 billion, or around 30% less than its most recent valuation of $70 billion. The company still faces numerous legal challenges, including a massive trade secrets lawsuit with Alphabet's self-driving vehicle unit Waymo and multiple government investigations into potentially illegal business practices.

The SoftBank deal triggers new governance terms at Uber that were approved by the company's board in October, though.

The development suggests many investors in Uber are now prepared to cash out, with SoftBank's offer being beneficial to anyone who backed the company in a period between 2010 and 2013.

The tender offer came at a particularly bad time for the company.

A former employee's charges of endemic sexual harassment led to an internal review, London has said it is stripping Uber of its license and recently Uber announced it had covered up a major hack.

Travis Kalanick resigned in June as Uber's chief executive but stayed on the company's board of directors.

Uber now has a powerful strategic partner in SoftBank, the Japanese telecom giant that is investing hundreds of billions of dollars in technology. Early investors like Benchmark Capital and Menlo are understood to be the ones that are selling the largest amount of Uber shares as part of SoftBank's offer and will see a return of approximately 3,600 times their investment. Its Softbank Vision Fund is a almost $100 billion investment fund snapping up stakes in emerging technology companies around the world, with roughly half the money targeted for investments in the U.S. SoftBank will appoint Vision Fund head Rajeev Misra to the board, along with others associated with the massive fund, according to the report.

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