SoftBank reportedly buys major stake in Uber at a big discount

What next for start-up Uber after Soft Bank stake

Ride-hailing company Uber Technologies is working on a deal to sell its U.S. auto-leasing business Xchange Leasing to startup digital vehicle marketplace Fair, according to a person familiar with the matter, Reuters reported.

The SoftBank deal triggers new governance terms at Uber that were approved by the company's board in October, though. SoftBank will get two seats on the expanded board, a source told Reuters. Uber lost $1.46 billion in the third quarter this year, up from $1.06 billion in the previous quarter.

The vast majority of that investment comes from SoftBank buying up shares held by existing Uber shareholders, including employees and earlier investors. That is a roughly 30% discount to its most recent valuation of almost $70 billion.

The tender offer values Uber at $48bn (£36bn), nearly a third lower than its most recent valuation of $69bn.

The group will buy most of the shares from early investors in a deal that values Uber at about $48bn (£35.7bn).

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Getting the company ready to go public will be Khosrowshahi's ultimate goal over the next year, though it won't be easy.

SoftBank required a minimum threshold of a 14% stake of the company to proceed with the deal. And the Uber deal will add to worries in Silicon Valley that the Japanese conglomerate can make similar demands on other investments.

Rajeev Misra, CEO of SoftBank Investment Advisers, said the firm was "appreciative of the support from Uber's shareholders in the successful tender offer".

"We have tremendous confidence in Uber's leadership and employees and are excited to support Uber". Kalanick resigned from his post earlier this year after a number of scandals, but still maintains a seat on the company's board of directors, where he is surrounded by allies and controls 16 percent of the voting power. However some Uber investors were concerned the price SoftBank was offering was too low, according to Recode.

The Uber investment comes after a year of troubles for the company, including a lawsuit by Alphabet Inc's self-driving auto unit Waymo that alleges trade-secrets theft and federal investigations that span possible bribery of foreign officials in Asian countries and the use of software to evade regulators.

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