After days of speculation, former Expedia (Nasdaq: EXPE) CEO Dara Khosrowshahi has been confirmed as Uber’s new CEO. Khosrowshahi beat out former General Electric Co. ( GE) CEO Jeff Immelt and current Hewlett Packard Enterprise Co. ( HPE) CEO Meg Whitman, who were both reportedly finalists for the position.
Khosrowshahi will replace Travis Kalanick, who stepped down from the position in June. Kalanick was pressured to leave the company after Uber had become embroiled in sexual harassment and discrimination scandals.
The Uber board sent out an email to employees on Tuesday confirming Khosrowshahi’s appointment. “We’re really fortunate to gain a leader with Dara’s experience, talent and vision,” the letter said. Khosrowshahi was slated to join Uber employees for a meeting on Wednesday.
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Uber is hoping that Khosrowshahi can help right the company’s public relations ship and repeat his Expedia success. Since Khosrowshahi took over at Expedia in August 2005, the company has more than tripled its market value.
Most U.S. investors are watching the Uber story unfold from a distance, as it has yet to hold its highly anticipated initial public offering. As of its most recent round of fundraising, the ride-sharing company had a valuation in the $70 billion range.
It’s unclear just how much the CEO turmoil has affected the timeline for an IPO. In June, Alasdair Warren, head of corporate and investment banking for EMEA at Deutsche Bank, told CNBC that the CEO controversy won’t stop the Uber IPO train. “I think that the prospects of executing an IPO remain extremely good,” Warren says. “I’m not sure that the change of CEO or a change in management of any kind is going to change that.”
[See: 5 Automakers to Rev Up a Long-Term Investor’s Portfolio.]
Expedia investors certainly see some value in Khosrowshahi’s leadership. Expedia stock initially fell more than 4.4 percent on Monday after Khosrowshahi’s potential departure was reported.
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Uber Expects Former Expedia CEO to Lead IPO Push originally appeared on usnews.com
