Ousted Uber CEO Travis Kalanick could make almost $9 BILLION from the firm’s blockbuster IPO
- Uber could make its debut on the public markets with a valuation of $100 billion
- Should it debut at this level, ex-CEO Travis Kalanick could be worth $8.6 billion
- This would send his already significant net worth of $5.8 billion even higher
- Uber is expected to hold its initial public offering by next month on the NYSE
He may have relinquished his CEO role at the company, but Travis Kalanick will be one of the chief earners from Uber‘s blockbuster IPO.
The ousted executive stands to make nearly $9 billion once the ride-hailing giant makes its long-awaited debut on the public markets next month, according to CBS News.
Kalanick stepped down from his role as CEO in June 2017 after Uber weathered a string of controversies related to allegations of a culture of sexual harassment, shady business tactics and mounting criticism from consumers.
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Travis Kalanick (pictured) will be one of the top earners from Uber’s blockbuster IPO when the ride-hailing giant makes its long-awaited debut on the public markets as soon as next month
Uber on Friday released an updated S-1 filing, which is a document that registers the firm’s securities with the Securities and Exchange Commission.
In it, the startup said it will offer 180 million shares at a price between $44 and $50 per share, which values Uber at as much as $91 billion.
The firm expects to list the shares on the New York Stock Exchange under the ticker ‘UBER.’
Kalanick owns 8.6 percent of Uber’s total shares, making him one of the top beneficiaries of the company’s IPO, next to Matt Cohler, a venture capitalist and board member at Uber, who owns 11 percent of shares, filings show.
Kalanick owns 8.6% of Uber’s total shares, making him one of the top beneficiaries of the company’s IPO, next to Matt Cohler, a board member, who owns 11% of shares, filings show
Previous reports have suggested that Uber could be valued as much as $100 billion, CBS News noted.
If it were valued at this level, Kalanick, who is also a board member, could reap $8.6 billion following Uber’s IPO.
This will send Kalanick’s already sizable net worth even higher. He’s currently worth $5.8 billion, according to real-time Forbes data.
It’s not exactly common for a former CEO to receive such an outsized payout for a company he or she no longer runs, according to experts.
‘I can’t recall a time when the single biggest beneficiary of an IPO is no longer involved when they go public,’ Arun Sundararajan told CBS News.
If Uber achieves a valuation of $91 billion upon its public debut, this is still much lower than what analysts were initially expecting.
Some Wall Street analysts anticipated that Uber would be worth a whopping $120 billion.
However, it’s possible that Uber scaled back its offering after seeing how rival ride-sharing firm Lyft’s IPO fared.
Lyft’s shares debuted on the market last month at $72 a share, but have since plunged as much as 25 percent from its opening price, sending a foreboding signal to Uber ahead of its IPO.
Still, should Uber go public at the high-end of its range, it will mark the largest tech IPO to debut this year.
Ahead of its IPO, Uber CEO Dara Khosrowshahi was unsurprisingly optimistic.
‘When I joined Uber as chief executive, many people asked me why I would leave the stability of my previous job for one that was anything but,’ he said.
‘My answer was simple: Uber is a once-in-a-generation company and the opportunity ahead of it is enormous.
‘We are still barely scratching the surface when it comes to huge industries like food and logistics,’ he added.
