Uber to Spin Off Driverless Unit With $1B in Japanese Cash
Confirming earlier speculation, CEO Dara Khosrowshahi announced yesterday that Uber Advanced Technologies Group will be a new corporate entity valued at $7.25 billion — thanks to a $1 billion investment from Toyota, auto parts supplier Denso and SoftBank’s VisionFund. The cash injection gives a badly needed boost to an unprofitable unit that’s been marred by unfavorable PR after one of its test cars killed a pedestrian in Phoenix.
What does this mean for Uber? Spinning off ATG’s expensive research and development costs will reduce Uber’s losses, which could make it more appealing to investors ahead of its May IPO.
Check out OZY’s Special Briefing on this year’s wave of tech IPOs.