SoftBank To End Uber’s Internal Conflict With $10 Billion Investment

It seems money really can solve wars. At least, this seems to be the case with the internal conflict in Uber, where a shareholder is poised to file a lawsuit against former CEO Travis Kalanick. With a prospect investment of $10 billion on the line, provided by the Japanese financial giant SoftBank, a tentative agreement to end all hostilities has been reached.

According to sources, it seems the negotiations are finally underway, Reuters reports. The decision to have SoftBank be an investor was actually made over a month ago. Unfortunately, the spat between the investment firm Benchmark and Kalanick had slowed the process. A spokesperson for Uber confirmed that the deal was proceeding faster now.

“We’ve entered into an agreement with a consortium led by SoftBank and Dragoneer on a potential investment,” the spokesperson said. “We believe this agreement is a strong vote of confidence in Uber’s long-term potential.”

SoftBank has been making waves over the last few years with its investments in several Silicon Valley firms. For now, the situation within Uber is one that mirrors the relationship between the U.S. and the USSR in the 60s.

Kalanick has decided to give up on some of his power in appointing board seats, Recode reports. Meanwhile, Benchmark has decided to hold off on filing its lawsuit until the deal with SoftBank is done, which it will drop entirely if it’s concluded.

It would appear that the governing factions within Uber are fractured, with all sides being extremely paranoid, sources indicate. It all boils down to the prospect of Travis making his triumphant return to the company he built, which one side in the board conflict is trying to realize.

Those who are against this are fighting tooth and nail to take away the power of the exiled Kalanick to make any more changes in Uber. This has resulted in slowing down finalization of the SoftBank investment.