The investors don't control the company. Only the board does. Sometimes that includes investors but it definitely doesn't control all of them. The board is required to do what's best for ALL shareholders, even if that means lower returns for some of them.
Uber raised $9B (1). Presumably this is all preferred stock or convertible debt, which is paid out 100% in an acquisition. That means investors only lose money and if Uber is acquired for under $9B. Over $9B, then investors and common shareholders splits the proceeds according to their ownership (2).
I'm simplifying as the liquidation preference matters based on the different valuations that investors paid.
For example, if Uber is acquired for $30B, then all the investors who paid above that valuation, would get their money back first. Then remaining investors and common shareholders would get their % split of the remaining pool of capital.
Further, Google Ventures invested hundreds of millions of dollars early on in Uber's life -- The eventual sale price would be discounted by their percentage ownership. E.G. if Google owns 10% of private Uber, and they offer $10 Billion for the company, their net would be $9 billion.
I think it would be a merger of equals type structure so the valuation stays academic vs. a buyout. You are correct but just to add a bit more about the board, they are pretty much the largest investors. If you look at CrunchBase other than the black female they tacked on in late 2016, it's mostly VCs, PE, and Saudis SW fund on the board. Kalanick had "controlling" shares and provisions but ultimately either through the board or indirectly, if you're not profitable (or not profitable enough) large shareholders control your fate, even if on paper they dont
Uber raised $9B (1). Presumably this is all preferred stock or convertible debt, which is paid out 100% in an acquisition. That means investors only lose money and if Uber is acquired for under $9B. Over $9B, then investors and common shareholders splits the proceeds according to their ownership (2).
I'm simplifying as the liquidation preference matters based on the different valuations that investors paid.
For example, if Uber is acquired for $30B, then all the investors who paid above that valuation, would get their money back first. Then remaining investors and common shareholders would get their % split of the remaining pool of capital.
1) https://www.crunchbase.com/organization/uber#/entity
2)Usually this is how it works, but sometimes the terms vary.