Uber co-founder Travis Kalanick sells half a billion dollars in stock after lockup period ends
Uber co-founder and director Travis Kalanick sold more than half a billion dollars worth of stock last week after the company’s lockup period ended. Kalanick was ousted as CEO of Uber after accusations that he helped foster an unhealthy environment at the company. Kalanick is starting a new venture called CloudKitchens, which reportedly has a major investment from a Saudi fund.
Uber co-founder and director Travis Kalanick sold more than half a billion dollars worth of stock last week after the company’s lockup period expired.
Uber’s 180-day restriction on inside and early investor sales came to an end Wednesday, sending the stock down that day in anticipation of a wave of sales. Kalanick, the former CEO of Uber who was ousted from the top seat after being accused of fostering an unhealthy workplace environment, sold more than 20 million shares held in a trust over three days last week, according to a financial filing submitted to the Securities and Exchange Commission on Friday.
Uber’s stock has plummeted to about $27 per share as of Friday’s closing price from its opening price of $42 at its May debut. The company’s market value is now about $45 billion, down from nearly $70 billion at the end of its first trading day.
Kalanick still directly owns more than 75 million shares in Uber, according to the filing. Despite his tenuous relationship to the company following accusations of sexual harassment and discrimination at Uber under his leadership, Kalanick still sits on the board and was present at the New York Stock Exchange during the company’s IPO in May, though not on the dais with company executives.
While it’s unclear why Kalanick chose to sell his shares, he could use the money to help fund his new venture, CloudKitchens. According to its website, the start-up plans to rent space to restaurateurs for delivery-based businesses. The project has again cast controversy on Kalanick after The Wall Street Journal reported he raised $400 million from a Saudi fund that is also a major investor in Uber, the fund’s first known deal in Silicon Valley since Jamal Khashoggi’s death. The Central Intelligence Agency concluded last year that Saudi Crown Prince Mohammed bin Salman ordered the killing of Khashoggi, a Washington Post columnist.
Uber’s 180-day restriction on inside and early investor sales came to an end Wednesday, sending the stock down that day in anticipation of a wave of sales. Kalanick, the former CEO of Uber who was ousted from the top seat after being accused of fostering an unhealthy workplace environment, sold more than 20 million shares held in a trust over three days last week, according to a financial filing submitted to the Securities and Exchange Commission on Friday.
Uber’s stock has plummeted to about $27 per share as of Friday’s closing price from its opening price of $42 at its May debut. The company’s market value is now about $45 billion, down from nearly $70 billion at the end of its first trading day.
Kalanick still directly owns more than 75 million shares in Uber, according to the filing. Despite his tenuous relationship to the company following accusations of sexual harassment and discrimination at Uber under his leadership, Kalanick still sits on the board and was present at the New York Stock Exchange during the company’s IPO in May, though not on the dais with company executives.
While it’s unclear why Kalanick chose to sell his shares, he could use the money to help fund his new venture, CloudKitchens. According to its website, the start-up plans to rent space to restaurateurs for delivery-based businesses. The project has again cast controversy on Kalanick after The Wall Street Journal reported he raised $400 million from a Saudi fund that is also a major investor in Uber, the fund’s first known deal in Silicon Valley since Jamal Khashoggi’s death. The Central Intelligence Agency concluded last year that Saudi Crown Prince Mohammed bin Salman ordered the killing of Khashoggi, a Washington Post columnist.
AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
