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Explaining the Messy Drama Going on in Uber's Boardroom
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Last week, Travis Kalanick, Uber Technologies’ co-founder and ex-CEO, surprised the ride-hailing giant’s board of directors when he appointed two new members: former Merrill Lynch CEO John Thain and Former Xerox CEO Ursula Burns.
According to Bloomberg, this was an alarming move, as Uber’s board is currently considering instilling some changes that would see Kalanick lose “much of his power.” When Kalanick resigned from his role as chief executive earlier this summer, he still kept his position on the company’s board and controlled a majority of voting shares.
Ursula & John bring 50+ years of combined executive experience to @Uber's board - helping the company become stronger now & for the future pic.twitter.com/osyby4TI5r
Uber’s board is voting today on these reforms, which have two other main objectives in addition to limiting Kalanick’s power: to create equal voting power among shareholders, as well as move the nearly $70 billion company toward its much-talked about initial public offering. New CEO Dara Khosrowshahi reportedly wants an IPO to happen within the next 18 to 36 months.
Citing sources, Bloomberg writes that “Kalanick sees the changes as poor corporate governance, meant to shift authority to Khosrowshahi and away from the board.”
The company is also set to vote on whether or not to pursue a major stock deal with Japan’s SoftBank Group (SFTBY - Free Report) . Bloomberg reported last week that the tech investment firm is expected to invest at least $1 billion in Uber, and buy $9 billion in stock from existing investors. And, SoftBank is also willing to block attempts to promote Kalanick to “the company’s top ranks."
One of Uber’s biggest investors, venture capital firm Benchmark, particularly wants this guarantee. According to Bloomberg’s sources, Benchmark desires a written assurance from SoftBank that “it would reject reappointing Kalanick as chief executive officer and block his appointment as chairman of the board or head of one of its subcommittees.”
Benchmark was one of the parties that helped lead to Kalanick’s ouster, but the firm is also suing the former chief executive for fraud. Kalanick, however, says he is the victim of malicious slander. Benchmark initially sought a “status quo order,” which would basically freeze any involvement Kalanick had in Uber’s business.
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Explaining the Messy Drama Going on in Uber's Boardroom
Last week, Travis Kalanick, Uber Technologies’ co-founder and ex-CEO, surprised the ride-hailing giant’s board of directors when he appointed two new members: former Merrill Lynch CEO John Thain and Former Xerox CEO Ursula Burns.
According to Bloomberg, this was an alarming move, as Uber’s board is currently considering instilling some changes that would see Kalanick lose “much of his power.” When Kalanick resigned from his role as chief executive earlier this summer, he still kept his position on the company’s board and controlled a majority of voting shares.
Uber’s board is voting today on these reforms, which have two other main objectives in addition to limiting Kalanick’s power: to create equal voting power among shareholders, as well as move the nearly $70 billion company toward its much-talked about initial public offering. New CEO Dara Khosrowshahi reportedly wants an IPO to happen within the next 18 to 36 months.
Citing sources, Bloomberg writes that “Kalanick sees the changes as poor corporate governance, meant to shift authority to Khosrowshahi and away from the board.”
The company is also set to vote on whether or not to pursue a major stock deal with Japan’s SoftBank Group (SFTBY - Free Report) . Bloomberg reported last week that the tech investment firm is expected to invest at least $1 billion in Uber, and buy $9 billion in stock from existing investors. And, SoftBank is also willing to block attempts to promote Kalanick to “the company’s top ranks."
One of Uber’s biggest investors, venture capital firm Benchmark, particularly wants this guarantee. According to Bloomberg’s sources, Benchmark desires a written assurance from SoftBank that “it would reject reappointing Kalanick as chief executive officer and block his appointment as chairman of the board or head of one of its subcommittees.”
Benchmark was one of the parties that helped lead to Kalanick’s ouster, but the firm is also suing the former chief executive for fraud. Kalanick, however, says he is the victim of malicious slander. Benchmark initially sought a “status quo order,” which would basically freeze any involvement Kalanick had in Uber’s business.
Will You Make a Fortune on the Shift to Electric Cars?
Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.
With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.
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