Report: Former GE CEO being considered for Uber CEO
What's the story
Since Uber CEO Travis Kalanick was asked to resign from his post in June, Uber's search for a new CEO has been long and dramatic. That search, however, might be coming to an end. According to journalist Kerry Swisher, and according to TechCrunch's sources, former General Electric CEO Jeff Immelt is seriously being considered to take the helm.
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Stakes are high in Uber
While Immelt's instatement as CEO isn't confirmed, he is reportedly the forerunner. Amid rumors of Kalanick's intent to return as CEO, stakes are high because Uber's $68.5 billion valuation is just nominal until there is an exit - either by IPO or by acquisition.
Kalanick
Benchmark Capital's lawsuit against Kalanick
Kalanick's resignation was fuelled by allegations of a workplace culture that included sexual harassment and discrimation. However, Kalanick still remains on the Uber board and has the power to appoint two more board seats, a power which has been contested in court by Uber's first and very important investor Benchmark Capital. Benchmark was also one of the five investors which had asked for Kalanick's resignation.
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Investors' opinions about Immelt
According to preliminary reports, there are mixed feelings about Immelt among Uber's investors. Some think he has the right disposition to bring the company to the right track. Others think his lack of industry expertise might not make him the most suitable for the job.
Lawsuit
Details: The two sides to the lawsuit
Benchmark Capital wants Kalanick off the Uber board as it believes that Kalanick failed to provide material information regarding the ethical and legal problems in the company. In response, Kalanick's ally and investor Shervin Pishevar suggested that Benchmark representative Matt Cohler should step down. Kalanick also accused Benchmark of taking advantage of him and making him resign when he was mourning his mother's death.