Exclusive: Uber shareholder group wants Benchmark off board
A group of Uber investors has asked that venture capital firm Benchmark step down from the company's board of directors, Axios has learned. It also wants Benchmark to divest enough shares so as to no longer have board appointment rights, claiming to have enough investor interest to handle more than a $6 billion sale. The move comes one day after Benchmark sued former Uber CEO Travis Kalanick for fraud, in an attempt to have him removed from the board.
Benchmark has not yet responded to a request for comment.
- Details: The shareholder group communicated its request via a petition-style email sent earlier this morning to other Uber investors and its board of directors, which has a meeting scheduled for today. Its basic argument is that Benchmark's action only complicates the company's already-troubled search for a new CEO, and effectively violates Benchmark's fiduciary duty to the company.
- Who signed the request? Shervin Pishevar (Sherpa Capital, although signed as an individual), Ron Burkle (Yucaipa Cos) and Adam Leber (Maverick).
- Why it matters: It was shocking enough for a major venture capital firm to sue the CEO of a highly-valuable portfolio company. For other VC firms to then make this sort of counter-move against a peer is similarly unprecedented. It's a brave new world in Silicon Valley.