Dec 1, 2017

Current Uber employees have restriction on stock sales to SoftBank

Photo: Mary Altaffer / AP

Current Uber employees eligible to sell shares to SoftBank are only allowed to tender up to 50% of their holdings, while there are no such restrictions on outside investors or former employees, according to multiple sources. The vast majority of Uber employees are not eligible, because they received restricted stock units rather than stock options.

Bigger picture: For years there has been alignment of interests between current and former Uber employees, in terms of stock value. This restriction changes that dynamic.

  • Uber founder and chairman Garrett Camp hasn't publicly said if he'll participate in the tender, but on Thursday night he tweeted that he's "looking to buy a significant amount of digital currency for the first time... I'm not going to trade, just buy and hold." He later deleted the tweet.
  • Eligible shareholders have until Dec. 28 to tender.
  • "Investor slogging," is a term that was used by Uber's former C-suiters to describe how they'd work to get big investors on their side, so they don't end up backing the competition. Wine 'em. Dine 'em. This is how the original conversations with SoftBank began, while both Travis Kalanick and Emil Michael were still in charge.

Go deeper

Mark Cuban opens door to 2020 run

Photo: Axios Events

Businessman and Dallas Mavericks owner Mark Cuban revived talk of an improbable 2020 presidential bid during an Axios virtual event on Friday.

  • "Everything's a reset right now," Cuban told Axios CEO Jim VandeHei. "If this would would've been a month ago, I would have said absolutely not. But obviously things are crazy, things are changing. So I'll keep an open mind. But I seriously doubt it."

Coronavirus dashboard

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  1. Global: Total confirmed cases as of 2 p.m. ET: 1,066,706 — Total deaths: 56,767 — Total recoveries: 223,697Map.
  2. U.S.: Total confirmed cases as of 2 p.m. ET: 258,214 — Total deaths: 6,605 — Total recoveries: 9,408Map.
  3. Business latest: Mark Cuban criticizes "arrogant" 3M on respirator production — The wartime mobilization effort to produce ventilators and medical supplies got started too late.
  4. Politics latest: Lawmakers on both sides of the aisle are worried about the difficulties of delivering the $2.2 trillion in stimulus aid.
  5. Jobs update: The U.S. lost 701,000 jobs in March, but the new report doesn't reflect the height of the virus' impact on the economy.
  6. World update: About half of the deaths worldwide are in Italy and Spain, with fatalities exponentially increasing across Europe.
  7. What should I do? Answers about the virus from Axios expertsWhat to know about social distancingQ&A: Minimizing your coronavirus risk.
  8. Other resources: CDC on how to avoid the virus, what to do if you get it.

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Mark Cuban criticizes "arrogant" 3M on respirator production

Photo: Axios Events

Businessman and Dallas Mavericks owner Mark Cuban said during an Axios virtual event Friday that 3M is "arrogant" for not speaking up about respirator production in the midst of the coronavirus outbreak.

What he said: Cuban criticized the company for "making more globally than domestically," echoing a similar line from President Trump now that the U.S. is the epicenter of the pandemic. "You can't ghost the American people," he told Axios CEO Jim VandeHei from Dallas.