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Tue 12 Nov 2019 08:26 AM

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Travis Kalanick sells 20% of his stake in Uber after lockup

Uber has underwhelmed investors in the public markets so far, with shares tumbling 40% since the IPO

Travis Kalanick sells 20% of his stake in Uber after lockup

Kalanick, who was ousted as Uber’s chief executive officer in 2017, remains one of tech’s richest entrepreneurs.

Travis Kalanick sold about 20% of his stake in Uber Technologies last week.

Kalanick, 43, a director at the ride-hailing company, sold 20.3 million shares worth about $547 million that were held in a trust, according to a regulatory filing on Friday.

The trades came after a 180-day lockup period restricting insider and early investor sales following May’s initial public offering. They were among the large stake disposals last week that pushed the stock down to an all-time low.

Uber has underwhelmed investors in the public markets so far. The shares have tumbled 40% since the IPO, reducing the San Francisco-based firm’s value from almost $76 billion at its listing to about $46 billion. They edged up 0.5% to $27.14 in New York trading Monday.

Kalanick, who was ousted as Uber’s chief executive officer in 2017, remains one of tech’s richest entrepreneurs. Even after the sale, he still owns 78 million shares in Uber - a 4.6% stake - and has a net worth of about $3.7 billion, according to the Bloomberg Billionaires Index.

In March of 2018, Kalanick created a fund called 10100, saying in a tweet it would focus on his “passions, investments, ideas and big bets.” That month he announced that he was buying a controlling stake in a distressed real estate company called City Storage Systems for $150 million and installing himself as CEO.

His latest business, CloudKitchens, a subsidiary of City Storage, got $400 million of funding from Saudi Arabia’s Public Investment Fund, which valued the food startup at $5 billion, the Wall Street Journal reported Thursday.