Uber will IPO by 2019 and let Softbank buy a huge stake, following a big board meeting

Uber's board of directors struck a grand bargain on Tuesday, settling a fractious internal battle that has hamstrung the ride-hailing company for months and paving the way to a giant IPO in two years.

The board also agreed to move forward with a multi-billion deal that would give Japan's Softbank as much as a 17% stake in Uber, the world's most valuable privately held tech startup.

Here are the changes approved by Uber's board, which will take effect after the Softbank deal closes, according to a person familiar with the matter:

• The special supervoting shares that concentrated power in the hands of cofounder Travis Kalanick and other insiders, will be annulled. Instead, all shares in Uber will have one vote.
• The board of directors has been expanded to 17 members, up sharply from its current 11 member size.
• A commitment for the company to have an IPO by 2019.
• Any new CEO must have 2/3 of the board vote until after the IPO

Uber's board agreed to the changes after meeting for several hours on Tuesday afternoon. 

And Benchmark Capital, an early Uber investor that had sued Kalanick, has agreed to drop the litigation once the Softbank deal closes, the person familiar with the matter said.

The deal appears to significantly curtail Kalanick's power, a somewhat surprising outcome after various moves and statements by the Uber cofounder that seemed to suggest he was spoiling for a fight.

Kalanick built Uber into a $69 billion ride-hailing behemoth, but was ousted as CEO in June amid a series of controversies and scandals relating to the company's practices and internal culture. In August, Uber appointed Dara Khosrowshahi, the CEO of Expedia, to replace Kalanick in the top job. 

Kalanick struck a conciliatory note in a statement to  Business Insider on Tuesday:

"Today the Board came together collaboratively and took a major step forward in Uber's journey to becoming a world class public company. We approved moving forward with the Softbank transaction and reached unanimous agreement on a new governance framework that will serve Uber well. Under Dara's leadership and with strong guidance from the Board, we should expect great things ahead for Uber," Kalanick said.\