SoftBank Leads Group to Buy 15% of Uber

A group led by Japanese telecom giant SoftBank Corp. has agreed to invest at least $8 billion to acquire 15% of troubled ride-hailing service Uber Technologies Inc., according to media reports.

The consortium, which reportedly includes San Francisco-based Dragoneer Investment Group and China’s Tencent Holdings Ltd., bought most of the shares from employees and early investors in a tender offer that ended last Thursday. That deal valued Uber at some $48 billion.

Reports say the consortium plans to spend an additional $1.3 billion to acquire more shares at current market prices. That offer values the company at almost $70 billion.

The investments would give SoftBank’s group two new seats on Uber’s board, which will be expanded to 17 directors from 11 currently. The restructuring is backed by CEO Dara Khosrowshahi, who succeeded founder Travis Kalanick in June.

Kalanick’s abrasive and confrontational management style has been blamed for a year marked by multiple investigations of Uber’s business practices, a lawsuit claiming the company acquired stolen technology, a sexual harassment scandal and the departure of several top managers.