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Uber CEO Travis Kalanick set to sell his entire stake in the ride-hailing startup

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Uber CEO

We have seen how the ride-hailing startup named Uber has become a trending company. As far as Uber is concerned, we have the ex-CEO of Travis Kalanick who has brought the company where it is right now. However, the latest reports suggest that the ex-CEO of Uber is looking to sell off his entire stake from the company. As per the public filings accessed by CNBC, Kalanick has “sold more than $2.5 billion worth of shares since a lockup period expired last month”.

This means that he now only has 10% of his Uber holdings left. As far as the lockup period is concerned, it is there so that employees don’t sell their shares in the company as soon as you they leave. Instead, they are forced to keep their shares so that the market value of the company’s shares don’t go down.

At the pace in which Kalanick is selling its shares, he is selling his stakes in the company from November 6 in a way that tells you that he will divest from Uber within days. About $250 million of the stakes in Uber are still with Kalanick which is after he sold stakes worth $383 million which he had in his portfolio.

As per FT, it is to be noted that selling of Uber shares by Kalanick can be interpreted by some as a vote of no confidence in current management and this could raise questions about his status as an Uber board member. Now, this is not the first time that someone has sold shares in Uber or any other company as Garett Camp has also sold his stakes in Uber but none of them has been at a level where ex-CEO of Uber has sold stakes which could be of interest for some. However, Kalanick might also be selling stakes to invest in his start-up CloudKitchens which hopes that restaurants will rent capacity to create food for delivery to customers.

Navneet is a business and technology passionate, looking forward to imparting the spectrum of his insight and verdicts on today's startup world. He plans to take NewsOzzy forward with the consistent support from you readers! Apart from NewsOzzy, he also runs a tech blog called as droidjournal.com. You can reach him at navneetschawla@gmail.com

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