The ride-hailing giant confirmed the investment in a statement Sunday night but did not provide details.
After the initial billion-dollar transaction is completed, SoftBank is expected to increase its ownership of Uber but will purchase shares at a price below valuation with the goal of reaching a 14 percent stake in the company, the AP report said.
Uber currently is valued at $68.5 billion, but according to the source, stock offers will be based on a lower valuation, so it’s hard to know exactly how much the total multibillion-dollar deal will be worth.
In a statement, Uber confirmed it reached an agreement with a consortium led by SoftBank and Dragoneer Investment Group.
The deal clears the way for Uber, one of the most valuable tech companies in the world, to sell stock to the public with an initial public offering set for 2019.
With the deal, early investors like Benchmark Capital can now sell at least some of their shares at a handsome profit.
The deal was delayed by a legal corporate governance dispute between the Silicon Valley venture capital firm and ousted CEO Travis Kalanick.
The suit, which was filed in August, alleged that the ousted Uber former CEO and co-founder Travis Kalanick was trying to pack Uber's board with his allies to pave the way for his eventual return to his post as CEO.
Both sides ended their feud on Sunday, clearing the way for the SoftBank investment.
Benchmark agreed to suspend a lawsuit against Kalanick, who controls three of 11 seats on the Uber’s board and drop it once Softbank gets through a one-month tender offer period that will start in about two weeks.
Founded in 2009, Uber has evolved the way the world moves by seamlessly connecting riders to drivers for hire through their apps.
The investment is a vote of confidence in Uber’s potential.
Already in over 400 cities, this deal will help strengthen the ride-hailing company’s corporate governance, fuel investments in technology while expanding their presence globally and locally.
The deal adds to SoftBank’s recent line of investments in ride-booking services in recent times.
Just last month, alongside Chinese giant Tencent, SoftBank was involved in a $1.1 billion investment round of Indian ride-hailing company Ola. This came less than three months after SoftBank led a $2.5 billion Series G funding round of Grab, Uber's biggest Southeast Asian rival.