Uber Is Taking SoftBank’s Money, Makes Travis Kalanick Impotent

Several notable events recently occurred in Uber, specifically, with regards to its board. Members basically voted to make some changes to the power structure of the company, making former CEO Travis Kalanick’s influence less potent. This was done in order to prepare for a massive investment by Japanese banking giant SoftBank, which could be worth up to $10 billion.

The deal has not yet been finalized, but barring any significant obstacle, Uber could be seeing massive investments from both SoftBank and Dragoneer Investment Group on Wednesday. Although details on the amount that will be provided have been scarce, TechCrunch estimates that it could be anywhere from $8 billion to $10 billion.

Uber’s board even sent a statement to the publication, noting that Uber’s board got new members.

“Today, after welcoming its new directors Ursula Burns and John Thain, the Board voted unanimously to move forward with the proposed investment by SoftBank and with governance changes that would strengthen its independence and ensure equality among all shareholders,” the statement reads. “SoftBank’s interest is an incredible vote of confidence in Uber’s business and long-term potential, and we look forward to finalizing the investment in the coming weeks.”

This deal resulted in Uber’s board seats expanding from 11 to 17, Recode reports, which really moves the power structure within the company around. This essentially cuts off the influence of the people who Kalanick had placed on the board in order to maintain his control. SoftBank will be getting three seats while three other spots will be filled by independent directors.

In a statement provided by Kalanick’s side, the former Uber boss seems to have taken the news well. However, this move also further solidifies the power of current CEO Dara Khosrowshahi, which was previously threatened by a board that was always quarreling when trying to decide the direction Uber would take.