In addition, the consortium will purchase up to US$9 billion worth Uber stocks from existing shareholders.
SoftBank Investment Advisors and SoftBank Group Corp board director, Rajeev Misra emphasised that "by no means is our investment decided".
"Upon closing, it will help fuel our investments in technology and our continued expansion at home and overseas, while strengthening our corporate governance", he said. The agreement will not only give SoftBank a major stake in Uber - it is looking to buy up at least 14 per cent of the company - but it will help put a rest to one of the many ongoing battles for new CEO Dara Khosrowshahi. "We are interested in Uber but the final deal will depend on the tender price and a minimum percentage shareholding for SoftBank".
The move was unveiled shortly after reports emerged that its former CEO Travis Kalanick and an influential investor had buried the hatchet in a long feud that paved the way for the acquisition.
The SoftBank deal is critical for Uber because it will trigger significant governance reforms, which include moving to one vote per share and expanding the board size to 17. If investors are reluctant to sell and SoftBank cannot hit its threshold of 14 percent ownership of Uber, SoftBank can walk away from the deal, the people said.
But the deal was threatened by conflict between Kalanick and U.S. venture capital firm Benchmark.
SoftBank shares were down 0.75 percent on the news with Makoto Sengoku, market analyst at Tokai Tokyo Research Centre, saying that investors were underwhelmed with the news. SoftBank will gain two Uber board seats as part of the investment.
Benchmark has agreed not to work with other investors to prop up the price during the tender offer. As well as boosting its investments in technology, Uber said it would strengthen its corporate governance. The deal could also be the largest private stock sale ever, and will create a host of new San Francisco millionaires as early employees sell shares. With so many scandals, issues and controversies, Uber need this investment.