Buffett Sought $3 Billion Investment in Uber -- WSJ
31 Mayo 2018 - 2:02AM
Noticias Dow Jones
By Greg Bensinger and Nicole Friedman
This article is being republished as part of our daily
reproduction of WSJ.com articles that also appeared in the U.S.
print edition of The Wall Street Journal (May 31, 2018).
Warren Buffett earlier this year offered to invest $3 billion in
Uber Technologies Inc., but the two sides couldn't agree on the
terms, according to a person familiar with the matter.
The talks between Mr. Buffett's Berkshire Hathaway Inc. and
Uber, reported earlier by Bloomberg News, came on the heels of a
multibillion investment in the ride-hailing firm by SoftBank Group
Inc. In January, the Japanese firm invested $1.25 billion directly
in Uber at around a $70 billion valuation, and bought another $6.5
billion worth of employees and investor shares at a $48 billion
valuation.
Dara Khosrowshahi, who became Uber's CEO last summer, is trying
to prepare the company for a planned initial public offering in
2019. The IPO, if it happens, is expected to be one of the largest
in recent memory. But Mr. Khowsrowshahi is working to pare costs
after the company reported a loss of $4.5 billion last year, while
repairing Uber's relationship with drivers and riders following a
year of scandal.
Uber's revenue is growing quickly -- up 70% in the first quarter
to $2.59 billion -- and has a strong cash position thanks to
previous funding. As of March 31, it held $6.3 billion in cash,
according to the company's recent financial statements reviewed by
The Wall Street Journal.
Berkshire has a history of investing in troubled companies in
exchange for favorable terms. During the financial crisis,
Berkshire threw lifelines to companies including Goldman Sachs
Group Inc. and General Electric Co. The company earned billions on
those investments.
More recently, Mr. Buffett has struggled to find sizable
attractive buys. His company has piled up more than $100 billion in
cash.
Mr. Buffett has typically avoided investing in technology
companies, saying they are outside his area of expertise. But
Berkshire has become one of the largest owners of Apple Inc. in
recent years.
Berkshire's auto-related subsidiaries include car insurer Geico
and dealership chain Berkshire Hathaway Automotive. Berkshire also
held General Motors Co. stock as of March 31.
Write to Greg Bensinger at greg.bensinger@wsj.com and Nicole
Friedman at nicole.friedman@wsj.com
(END) Dow Jones Newswires
May 31, 2018 02:47 ET (06:47 GMT)
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