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Kalanick signs contracts to divest a large chunk of Uber stock

On Behalf of | Jan 18, 2018 | Contracts

Business law attorneys in Oregon may often be called on to process sales transactions for the transfer of large blocks of corporate shares in private or public companies. Such transactions may require various contracts and financing terms that experienced professionals will prepare and process. There are countless reasons why an investor or even a high-placed officer will want to sell all or part of his or her stock shares in the company.  

These issues were likely relevant in the recent announcement by Travis Kalanick, former Uber CEO, that he will be selling 29 percent of his Uber shares, reportedly valued at $1.4 billion, according to a Bloomberg report. The purchaser is SoftBank Group, a telecommunications corporation that recently purchased a stake in Uber. SoftBank recently closed an earlier purchase of about 15 percent of Uber’s shares at a 30 percent discount.

SoftBank, a Japanese company, acquired its stake by purchasing shares from early investors and employees of Uber. Kalanick’s move may be tied to his ouster as CEO of the company he helped found. This past summer, he stepped down as CEO after a rash of bad publicity about the company’s corporate culture and aggressive affronts against competitor companies. He remained on the Uber board of directors and intends to remain there even after divesting nearly one-third of his shares.

Kalanick also had to confront a lawsuit filed against him by a major shareholder for fraud, breach of contract and fiduciary breaches. The precise reasons for unloading a big chunk of his equity in the company are unclear at this time, but they may be tied to the lawsuit and recent turmoil over the pressure to oust him as CEO. These types of corporate transactions may occur in any state where a business is located or where the parties to the sales contracts are located. Oregon sees its fair share of such corporate transactions.

Source: celebritynetworth.com, “Uber CEO Travis Kalanick Is Selling 29% Of His Stake In The Company…How Much Is That Worth?“, Joey Held, Jan. 14, 2018