Warren Buffett wanted to invest $3 billion in Uber but talks fell through
Monday, June 4, 2018/
Billionaire investor Warren Buffett had considered investing $US3 billion (around $3.97 billion) in ride-sharing giant Uber earlier this year, however talks fell through, according to a Bloomberg report.
The talks broke down following disagreements over the terms and size of the deal, Bloomberg reported people familiar with the matter as stating.
Under the deal, Buffett’s Berkshire Hathaway would have provided a convertible loan, both protecting the investment in the event of financial trouble at Uber and delivering upside if it continued to grow in value, according to sources, with one source stating that Buffett’s initial offer was well above $US3 billion.
However, Uber chief executive Dara Khosrowshahi had proposed decreasing the size of the deal to $US2 billion, according to a Bloomberg source, with the talks eventually falling apart.
Buffett, meanwhile, has confirmed to CNBC that the talks did take place. Buffett said he’s “a great admirer” of Khosrowshahi.
“Some of the reported details are not correct, but it’s true that Berkshire had discussions with Uber,” he said.
Khosrowshahi took on the chief executive role at Uber in August last year following the resignation of his predecessor Travis Kalanick.
From the frontlines
A leaf out of Israel's book: Australia needs to step up, or risk falling further behind Anthony Aarons Epifini co-founder
'Few are destined to be unicorns': When is the right time to sell your startup? Peter Forbes HROnboard founder
CX versus UX: What's the difference, and why does it matter? Tom Uhlhorn Tiny CX founder
How augmented reality can motivate and assist employees to develop their skills Alexander Roche Androgogic founder
Forget gender quotas: It's time to review your definition of diversity Inga Latham SiteMinder chief product officer
How to assemble a board of directors that will make, not break, your startup Mark Rohald Cluey Learning co-founder