Uber and new CEO Dara Khosrowshahi are the big winners of the Waymo trial fiasco

Business Insider | 2/9/2018 | Julie Bort
maye (Posted by) Level 3
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With the settlement between Waymo and Uber, Dara Khosrowshahi has cleaned up one of the ugliest lawsuits the company faced, full of bad blood.

This was a face-saving gesture for both companies. Waymo gets a payment, but under terms that Uber's board could swallow.

Khosrowshahi - Credit - Hurdle - Company - IPO

Khosrowshahi gets to take credit for eliminating another big hurdle as he moves the company toward its promised 2019 IPO.

Five months ago, Dara Khosrowshahi walked into one of the messiest jobs in tech.

CEO - Uber - Khosrowshahi - Organization - Problems

As the new CEO of Uber, Khosrowshahi inherited a scandal-plagued organization facing morale problems, a talent exodus, regulatory threats and a potentially devastating lawsuit with Waymo, the self-driving car unit of Google parent Alphabet.

On Friday he added an enormous feather to his cap as Uber's new leader.

Uber - Rehabilitation - Work - Progress - Surprise

Uber's rehabilitation is still a work in progress, but in striking a surprise legal settlement with Waymo, Khosrowshahi successfully stared down the enemy and freed himself of a major distraction hanging over the company.

Uber has agreed to pay a settlement to Waymo of $245 million worth of Uber stock based on a high $72 billion valuation, a person familiar with the settlement told Business Insider.

Win - Waymo - Waymo - Payment - Uber

It's a face-saving win for Waymo: Waymo gets a payment. Uber ends the suit and, at a $72 billion valuation, that means it coughed up less stock per dollar than previous investors got for their money. And, it was half the initial settlement offer that Waymo wanted: Waymo originally proposed $500 million, a deal Uber's board rejected, a close source to the situation told Business Insider.

But the real winner here is Khosrowshahi.

Win - Lawsuit

To understand why this a win for him, let's recap why this lawsuit was so important.

On the surface, this lawsuit was about eight bits of proprietary tech that Waymo says Uber stole from it when Uber bought a startup. That startup was launched by...
(Excerpt) Read more at: Business Insider
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