Uber's valuation could be significantly slashed after SoftBank deal

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Uber investors and employees tendered shares equal to about 20 pct of the company, the Journal reported, citing unnamed sources. Uber will enact governance reforms that disempower the two warring factions and increase the size of the board to a massive 17 people.

Softbank led a consortium that reportedly agreed to invest at least $8bn for a roughly 15% stake in the San Francisco-based ride-hailing 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.

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

The investor group is also buying about $1.25bn worth of new shares at a price that values the firm at nearly $70bn, a significantly higher price that is similar to what Uber shares fetched in its last fundraising round.

Travis Kalanick resigned in June as Uber's chief executive but stayed on the company's board of directors. The Japanese telecommunications giant acquired about 15% of the company in the deal, which valued the the company at $48 billion and included an additional $1.25 billion to buy shares directly from the company. Last month, Uber disclosed that it had covered up a security breach that had compromised the personal data of 57 million rider and driver accounts, and SoftBank was able to talk down the price of its investment. Softbank will limit its stake to 15 percent, valuing Uber at a 30 percent discount of its most recent valuation of almost $70 billion. There's no evidence that the data taken has been misused, according to Uber's recently hired CEO, Dara Khosrowshahi. One will likely go to Rajeev Misra, chief executive of SoftBank's tech investment fund; no word yet on who will fill the second seat.

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