Uber’s former CEO Travis Kalanick cashes in another $93 million in stock as he separates himself further from the rideshare giant


FILE PHOTO: Former Uber Technologies Inc. CEO and co-founder Travis Kalanick walks on the floor of the New York Stock Exchange (NYSE) during the company's IPO in New York, U.S., May 10, 2019. REUTERS/Andrew Kelly

Former Uber CEO Travis Kalanick continued his ongoing share sell-off into December, cashing in more than $93 million after selling the company’s stock over a three-day period.
Kalanick’s combined sales now ring in at more than $1.8 billion since Uber’s post-IPO lockup period expired on November 6.
While the former chief executive has been dumping shares of the company he helped build, current CEO Dara Khosrowshahi has been boosting his own stake. The executive spent $6.7 million on Uber shares on November 18.
Watch Uber trade live here.

Former Uber CEO Travis Kalanick pushed his recent selling streak into December, offloading more than $93 million worth of the company’s stock over a three-day period.

The company founder sold roughly 3.2 million shares between November 27, November 29, and December 2, according to an SEC filing. The latest cash-out brings Kalanick’s total sale to $1.8 billion as he further distances himself from the rideshare giant.

Kalanick still holds more than 33 million shares, worth roughly $950 million as of 10 a.m. ET Tuesday. His stake counts for roughly 1.94% of Uber’s shares outstanding.

The former CEO’s sell-off began in early November after Uber’s post-IPO lockup period expired. Early investors were allowed to offload shares for the first time on November 6, and the subsequent sales dragged the stock to record lows.

Kalanick dumped $547 million worth of stock in the first week of November, and an additional $164 million between November 11 and November 13. His biggest sales arrived later in the month, offloading more than 10 million shares on November 20 alone.

While the 43-year-old founder has been liquidating his Uber stake, current CEO Dara Khosrowshahi has been buying up shares. The chief executive spent $6.7 million on Uber stock on November 18, and now holds 1.53 million shares.

Since resigning from Uber in June 2017, Kalanick has shifted his focus to a new startup. He now leads CloudKitchens, a firm that rents commercial space and renovates it into leasable kitchens for delivery-only restaurants.

Kalanick sank $300 million into the startup, and the firm received additional backing from Saudi Arabia in January. The kingdom’s sovereign-wealth fund invested $400 million into the firm, valuing CloudKitchens at $5 billion.

The Wall Street Journal first covered the Saudi investment on November 7.

Uber stock traded at $28.88 per share at 10:20 a.m. ET Tuesday, down roughly 31% from its May IPO.

The company has 27 “buy” ratings, 11 “hold” ratings, and one “sell” rating from analysts, with a consensus price target of $44, according to Bloomberg data.

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Source:: Businessinsider – Finance

      

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