SoftBank, along with Dragoneer Investment Group and General Atlantic, are expected to invest at least $1 billion in Uber and purchase up to $9 billion worth of Uber shares from existing investors.
Uber's statement said it reached an agreement with a consortium led by SoftBank and Dragoneer Investment Group.
The transaction will be conducted through a tender-offer process and may take at least one month to be completed.
It's not clear from reports whether SoftBank will be acquiring some or all of Benchmark's shares in the company, but given the fact that Benchmark has gone from all guns blazing against Uber to its current non-recalcitrant position, the logical conclusion is that Benchmark will have profited from the deal in some shape or form. The deal is a vote of confidence in the company's potential and "will help fuel our investments in technology and our continued expansion at home and overseas, while strengthening our corporate governance", the statement said. "Upon closing, it will help fuel our investments in technology and our continued expansion at home and overseas, while strengthening our corporate governance", said Matt Kallman, an Uber spokesman, as quoted by the New York Times. If investors are reluctant to sell and SoftBank can not hit its threshold of 14 percent ownership of Uber, they are permitted to withdraw the deal.
The agreement comes in the wake of a board meeting, in which directors voted to move forward with an investment from SoftBank. As part of the deal, Uber's board agreed to sweeping governance changes, including measures that reduce the influence that Travis Kalanick, Uber's former chief executive, has at the company.
App-based cab aggregator Uber has closed a deal with Japanese multinational telecommunications corporate SoftBank, commissioning the sale of a significant portion of its sale to the latter, in a bid to implement modifications in management and go public in two years. The initial price for the tender offer may not be set for more than a week.
Kalanick, who controls three of 11 seats on the Uber board, agreed to allow a majority of board members to vote on any future appointments he makes, according to the person.
Mr Son said a deal would depend on "pricing and the terms and conditions" as most of Softbank's investment would be used to buy out shares from current investors. But the SoftBank investment will let some of the company's investors sell their shares to lock in huge gains.
It also hinges on investors being willing to sell their shares.
Katie Benner and Mike Isaac are New York Times writers.